We help global businesses simplify imports and exports with expert customs brokerage, HS code classification, permit management, and freight coordination across China, Southeast Asia, and Japan.
Understanding industry terminology is essential for navigating the complex world of global trade and cross-border logistics. This glossary provides clear, concise definitions of the most commonly used terms in freight forwarding, customs clearance, shipping documentation, and supply chain operations.
Whether you’re an importer, exporter, or supply chain professional, this resource is designed to help you communicate confidently and stay compliant in every transaction.
SOC stands for Shipper’s Own Container. It means the shipper (or a leasing company) provides the container, while the carrier only provides the transport service.
COC stands for Carrier’s Owned Container. The container is owned and provided by the carrier, and the shipper returns it to the designated depot after unloading. This is the most common method in container shipping.
SOC: The shipper manages and maintains the container. It offers more flexibility, often used in equipment shortages or for special containers.
COC: The carrier provides and manages the container. It is more convenient and the standard option for most trade lanes.
Not always. SOC may be cheaper in cases of container shortages or on backhaul routes, but on major trade lanes (e.g., US, Europe), SOC and COC rates are often similar, and SOC may even incur extra handling costs.
1) During peak seasons or when carriers face equipment shortages.
2) In regions with limited container supply, such as Africa or Central Asia.
3) For special equipment shipments (e.g., Open Top, Flat Rack, ISO Tanks).
4) On backhaul or project cargo routes.
The 45-foot high cube container (45HQ/45HC) looks similar to standard containers, but because carriers provide limited availability and freight rates are usually quoted separately, it is generally classified as special equipment in the shipping industry.
Typically:
Standard containers: 20GP, 40GP, 40HQ
Special equipment: 45HQ, Reefer, Open Top, Flat Rack, ISO Tank, etc.
Therefore, although the 45HQ functions similarly to standard containers, in practice it is usually managed as special equipment.
On short-sea routes (e.g., China–Japan/Korea, Southeast Asia), 40GP and 40HQ often have the same rate because:
1) Transit times are short and vessel space is sufficient, so carriers don’t need to differentiate slot usage.
2) Most cargo is general merchandise, with limited demand for high cubes.
3) Terminal handling costs are nearly identical.
On long-haul routes (e.g., to North America or Europe), the situation changes:
1) Longer voyages and tighter capacity make every slot valuable, and 40HQ offers ~10 CBM more space than 40GP.
2) Many exports are light and voluminous cargo (furniture, textiles, plastics), with strong demand for 40HQ.
3) To manage supply and maximize revenue, carriers typically charge a premium for 40HQ.
In short, short-sea routes often show no price difference, while long-haul routes usually price 40HQ higher than 40GP.
Yes. Open Top containers have a similar internal height to standard containers (approx. 2.28m for 20OT and 2.38m for 40OT). The difference is that the steel roof is replaced by a removable tarpaulin, allowing loading of over-height cargo.
In practice:
1) If cargo height ≤ internal height, it can be loaded and covered with the tarpaulin.
2) If cargo height exceeds the internal height, it may extend above the container roof, but most carriers only allow 30–60 cm over-height.
3) Final approval depends on carrier policy, route restrictions, and local regulations on road transport (bridges, tunnels, etc.).
For significantly over-height cargo, a Flat Rack (FR) is usually more suitable.
Not exactly.
1) Within internal height: If the cargo does not exceed the internal height (approx. 2.28m for 20OT, 2.38m for 40OT), the freight is usually charged at the standard OT rate.
2) Over-height (cargo extending above the roof): Once the cargo exceeds the container’s height, carriers typically apply an Over-height Surcharge (or OOG Surcharge) based on the excess height, safety concerns, and space utilization.
3) Most carriers allow up to 30–60 cm over-height with standard or slightly increased charges. Beyond that, the shipment may require special approval, and the freight cost can be significantly higher.
External dimensions: 6.06m (L) × 2.44m (W) × 2.59m (H)
Internal dimensions: 5.9m (L) × 2.35m (W) × 2.39m (H)
Capacity: approx. 28 CBM
External dimensions: 12.19m (L) × 2.44m (W) × 2.59m (H)
Internal dimensions: 12.0m (L) × 2.35m (W) × 2.39m (H)
Capacity: approx. 58 CBM
External dimensions: 12.19m (L) × 2.44m (W) × 2.89m (H)
Internal dimensions: 12.0m (L) × 2.35m (W) × 2.69m (H)
Capacity: approx. 68 CBM
RT stands for Revenue Ton, a common billing unit in international LCL (Less than Container Load) shipping.
The calculation is based on:
1 RT = 1 CBM (cubic meter) or 1,000 KG (gross weight), whichever is greater.
Example:
Shipment with 2.5 CBM, 500 KG → Charged as 2.5 RT (volume larger).
Shipment with 1 CBM, 1,500 KG → Charged as 1.5 RT (weight larger).
Yes. Unlike most other lanes, North America uses a stricter weight conversion:
1 RT = 1 CBM or approx. 363–375 KG (depending on carrier/forwarder).
Example:
Standard lane: 1 CBM = 1,000 KG
U.S./Canada lane: 1 CBM ≈ 363–375 KG
This means heavy cargo will be charged more RT on U.S./Canada lanes, making freight costlier than on other routes.
Because handling and warehousing costs in North America are higher, the lower weight conversion balances the cost structure between heavy cargo and light/volumetric cargo.
Air freight is based on Chargeable Weight, which is the greater of Gross Weight and Volumetric Weight. Volumetric weight is calculated as: Length × Width × Height (cm) ÷ 6000, meaning 1 CBM = 167 KG.
Direct flights are faster but more expensive, ideal for urgent or high-value cargo. Transit flights cover more destinations and are often cheaper, though slightly slower, and may include truck connections (RFS).
Passenger aircraft carry cargo in the belly hold, with limited space, suitable for small or light shipments. Freighters are dedicated to cargo, can load ULD pallets and oversized cargo, offering stronger capacity but fewer scheduled flights.
Wide-body aircraft are twin-aisle planes with large cargo holds, capable of carrying ULDs and commonly used on long-haul routes. Narrow-body aircraft are single-aisle planes with smaller belly holds, mainly for short-haul routes and unsuitable for large cargo.
At present, there are almost no true nonstop flights between China and South America. Most cargo and passenger services require transit via hubs in North America, Europe, or the Middle East. For example, shipments from Shanghai to São Paulo often transit in Los Angeles, Miami, Frankfurt, or Madrid.
Yes. However, it must comply with ICAO and IATA Dangerous Goods Regulations (DGR).
Most dangerous goods—such as lithium batteries, dry ice, flammable liquids, and corrosives—can be shipped by air if they meet DGR standards. Extremely hazardous items (e.g., explosives, certain toxic chemicals) are prohibited.
No. Only airlines with dangerous goods handling authorization can carry DG cargo. Shippers must confirm acceptance in advance before booking.
Charged when a container stays at the port/terminal beyond the free days.
Fee is for using port space.
Charged when a container is kept outside the port beyond the free days.
Fee is for using the carrier’s container too long.
Demurrage: 7 days – 5 free days = 2 days payable
Detention: 8 days ≤ 10 free days = 0 days payable
Result: 2 days of demurrage, 0 days of detention
Demurrage: The container stayed 3 days at the port, within the 5 free days → 0 days demurrage.
Detention: After pick-up, the container was kept for 14 days. Free time is 10 days → 4 days detention.
Result: Demurrage = 0 days; Detention = 4 days
Yes. We provide alerts on tariff changes, license policies, and restricted item updates for all covered markets.
It is a document issued by an accredited laboratory to confirm whether cargo complies with air or sea transport safety requirements, specifying whether it is classified as dangerous goods and under what conditions it can be shipped.
An MSDS is provided by the manufacturer to describe a chemical’s properties and hazards. A Transportation Identification Report is based on actual sample testing by a qualified third-party lab and carries legal authority. Carriers and customs rely on the report for compliance.
Because air transport follows the IATA DGR, while sea transport follows the IMDG Code. These regulations differ, and the same cargo may be classified differently under each, so separate reports are needed.
Common examples include batteries (lithium batteries and equipment containing batteries), magnetic goods (speakers, motors), chemicals (powders, liquids, coatings), flammable or explosive products, and other sensitive cargo.
Typically valid for 6 to 12 months, depending on cargo type and carrier requirements. Shippers should always verify validity before each shipment.
HS Code is short for the Harmonized Commodity Description and Coding System, an international standardized system of names and numbers used to classify traded products. Sometimes, people also say “Harmonized System Code” as a simpler way to refer to it.
The HS Code is developed by the World Customs Organization (WCO) and consists of 6 digits.
The HTS Code is usually 10 digits, based on the HS Code, with the last 4 digits assigned by individual countries’ customs authorities.
HTS Code stands for Harmonized Tariff Schedule Code. It is based on the HS Code and further developed by individual countries’ customs authorities for tariff and regulatory purposes.
Regulatory requirements are the specific rules or conditions set by a country’s customs or government authorities that determine whether a product can be imported or exported. They may include licenses, inspections, certifications, or quotas, depending on the HS/HTS Code of the product.
Yes. Every country sets its own regulatory requirements to manage imports and exports. However, the type and strictness of these requirements vary depending on the product and the country’s laws.
The Customs Declaration Number is a unique 18-digit number automatically generated by China Customs once a declaration is submitted. It is used for tracking clearance status, tax payment, and audits. It functions like the “ID number” of a declaration.
It is the transport document number shown on the customs declaration to match with the manifest. In ocean freight, it is usually the Bill of Lading (B/L No.); in air freight, it is the Air Waybill (AWB No.).
Yes, in principle. It refers to the B/L No. in ocean freight or AWB No. in air freight, used for customs declaration and manifest matching.
Because customs manifests are usually filed under the MBL (Master B/L). Therefore, the declaration number typically shows the MBL instead of the HBL. Only when “house manifest filing” is required will the HBL appear on the declaration.
An MSDS (Material Safety Data Sheet) is a safety document describing the composition, hazards, handling, and transport requirements of a chemical. It is widely used in international trade.
The MSDS is provided by the manufacturer to describe the chemical’s properties and risks. The transportation report, issued by an accredited lab, provides the official conclusion on whether the cargo is classified as dangerous goods and how it can be shipped.
Because Chinese Customs requires a Chinese version, while airlines, shipping lines, and overseas customs authorities need an English version. A bilingual MSDS helps prevent delays and misunderstandings.
Yes. Whether classified as dangerous goods or not, chemicals generally require an MSDS for international shipping to describe their nature and transport conditions.
No. The MSDS is only informational, while the transportation report is a legally recognized document. Both are usually needed for compliant and safe shipment.
Magnetism Inspection is the process of testing air cargo for magnetic field strength to ensure it does not interfere with aircraft navigation and communication systems.
Goods containing motors, magnets, speakers, headphones, magnetic toys, or machinery with strong magnetic components typically require inspection.
Magnetic flux is measured at 2.1 meters from the package surface:
1) Weak or no magnetism → Treated as general cargo
2) Magnetism within safe limits → Air shipment allowed with inspection certificate
3) Strong magnetism → Must be shipped as dangerous goods or may be prohibited
Yes. It usually requires a customs pre-declaration form for booking and can be done either at an inspection station or on-site.
Yes. Airlines will check the Magnetism Inspection Report at cargo acceptance. Without it, the shipment may be rejected.
International transportation involves many risks, such as natural disasters, theft, fire, or collision. Cargo insurance transfers these risks to the insurer, ensuring the shipper does not bear the full financial loss.
It usually covers the entire journey from the shipper’s warehouse to the consignee’s warehouse, including ocean, air, land, and reasonable transshipment or temporary storage. Long-term storage requires separate warehouse insurance.
Insurance must be purchased before any loss occurs, usually before the shipment departs or is loaded on board. Post-loss insurance is invalid.
Cargo insurance covers the goods themselves, while freight forwarder liability insurance covers the forwarder’s legal responsibility for errors, omissions, or negligence.
Most cargo insurance policies have a time limit (e.g., 60 or 90 days). If transportation is delayed beyond this period, the shipper must arrange for an extension or additional coverage.
In most cases, cargo insurance is not mandatory. Whether it is purchased depends on the trade terms and contractual agreements between the buyer and the seller. However, in some situations—such as when required under a letter of credit, specific country import regulations, or contractual obligations—cargo insurance may be compulsory. To protect their goods and reduce risks, most shippers and consignees choose to purchase cargo insurance even when it is not legally required.
Yes. According to Incoterms, under CIF (Cost, Insurance and Freight) and CIP (Carriage and Insurance Paid To), the seller is obligated to purchase cargo insurance on behalf of the buyer and provide the insurance certificate as part of the shipping documents. This is a mandatory requirement of these terms.
It is also important to note the difference in coverage under Incoterms 2020:
CIF: The seller must provide at least minimum cover (Institute Cargo Clauses C) for marine cargo insurance.
CIP: The seller must provide a higher level of cover, usually Institute Cargo Clauses A (All Risks).
If the buyer requires broader protection, this must be agreed upon in the sales contract.
Duties, licenses, permits, and all other brokerage
requirements are handled expertly for optimal
clearance.(内容简介3行)
Duties, licenses, permits, and all other brokerage
requirements are handled expertly for optimal
clearance.(内容简介3行)
Duties, licenses, permits, and all other brokerage
requirements are handled expertly for optimal
clearance.(内容简介3行)
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Frequently
Asked Questions
Under China’s crackdown, it carries high risks and may be deemed illegal. Exporters should use licensed and compliant channels.
Verify HS codes and regulatory conditions, declare value and quantity, and submit complete documents in line with customs rules.
Misclassification of HS codes, document discrepancies, undervaluation, false declarations, and indirect export declarations.
Ensure products meet destination country regulations, obtain necessary certifications, and submit accurate documents.
Yes. By proper HS classification and leveraging Free Trade Agreements (FTA), businesses can minimize duty costs.
Policy interpretation, documentation review, and risk control to ensure timely fund recovery.
Yes. It helps review contract terms to reduce legal and performance risks.
Select FOB, CIF, DDP, etc. depending on risk allocation and transport mode.
It depends on the destination, e.g., CE (EU), FDA (US), CCC (China).
Build a compliance system, keep complete records, and prepare for anti-dumping or trade remedy cases.
No. A domestic Chinese entity or agent must act as the importer.
They can use an import agent to act as the importer and handle customs clearance.
NMPA registration and a medical device distribution license.
Overseas manufacturers must register with GACC, and Chinese importers need a food business license.
Special-use cosmetics require NMPA registration, and importers need cosmetic business licenses.
Registration, hazardous transport compliance, and proper customs declaration.
Yes, they must comply with China’s used machinery catalog and require pre-inspection and permits.
Business license, import qualifications, contract, invoice, packing list, bill of lading, and certifications.
Select one with proper licenses, experience, and knowledge of customs regulations.
It helps overcome qualification gaps, reduces risks, and speeds up clearance.
Under China’s crackdown, it carries high risks and may be deemed illegal. Exporters should use licensed and compliant channels.
Verify HS codes and regulatory conditions, declare value and quantity, and submit complete documents in line with customs rules.
Misclassification of HS codes, document discrepancies, undervaluation, false declarations, and indirect export declarations.
Ensure products meet destination country regulations, obtain necessary certifications, and submit accurate documents.
Yes. By proper HS classification and leveraging Free Trade Agreements (FTA), businesses can minimize duty costs.
Policy interpretation, documentation review, and risk control to ensure timely fund recovery.
Yes. It helps review contract terms to reduce legal and performance risks.
Select FOB, CIF, DDP, etc. depending on risk allocation and transport mode.
It depends on the destination, e.g., CE (EU), FDA (US), CCC (China).
Build a compliance system, keep complete records, and prepare for anti-dumping or trade remedy cases.
By checking regulatory condition codes linked to the HS classification.
NMPA registration and a medical device distribution license are required.
Overseas manufacturers must register with GACC and meet labeling and quarantine requirements.
Product registration, formulation details, and ingredient safety certificates.
Registration, hazardous transport qualifications, and special declaration procedures.
Compliance with the used machinery catalog, import permits, and pre-inspection.
Clearance delays, supplementary filing, or even re-export.
Contract, invoice, packing list, bill of lading, customs form, and licenses.
By applying HS code-based rates to the customs value.
We coordinate with customs, submit additional documents, and provide compliance justifications.
A facility where goods can be stored tax-free before customs clearance, useful for transshipment and distribution.
Local distribution, faster delivery, and lower cross-border costs.
Yes, it can handle B2B, B2C, and e-commerce deliveries.
Yes, including compliant labeling, repackaging, and palletizing.
By using Warehouse Management Systems (WMS) for real-time tracking.
With policy monitoring, contingency planning, and supplier diversification.
Market volatility, transport disruptions, natural disasters, and compliance penalties.
Yes, through green logistics and carbon footprint tracking.
We combine global networks, compliance expertise, and digital tools to build secure and efficient supply chains.
International supply chain security certifications that help reduce clearance risks.
By updating regulatory databases in real time and adapting clearance recommendations.
Yes, by pre-checking documents and simulating customs processes to prevent errors.
By forecasting demand, monitoring inventory, and dynamically adjusting transport routes.
Yes, when combined with IoT, AI enables real-time tracking and monitoring.
Yes, by optimizing transport routes and warehouse allocation.
By integrating different countries’ regulations into one unified compliance system.
Yes, through data modeling to forecast delays, price fluctuations, and policy risks.
Yes, by tracking carbon footprints and optimizing green supply chains.
It will be a core driver in compliance, customs clearance, and supply chain management.
Because we combine trade expertise with cutting-edge AI to deliver compliant, efficient, and practical digital solutions.
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