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Every Term, Explained

Every Term.
Made Simple.
No Guessing.

Here is every word you meet when buying from India,
each one explained simply, with the reason it matters.
Look up any term instead of guessing what it means.

28
Terms
6
Topics
12
Letters
8
Guides
A
APEDA
India's Agri Export Authority

The Agricultural & Processed Food Products Export Development Authority, known to every buyer as APEDA, is the Indian government body that registers exporters of rice, other cereals, groundnuts and processed foods.

AWB
Air Waybill

The document an airline issues to confirm it has received the goods for an air shipment. It works like a B/L does for air freight, but it is not a document of title, so the named consignee can collect the cargo without it.

B
B/L
Bill of Lading

The most important document in ocean shipping, and the one that carries the most risk if it is handled carelessly. It does three jobs at once. It is a receipt proving the carrier took the goods. It is proof of the contract of carriage. And it is a document of title, which means whoever holds the original can collect the cargo. That last job is the reason an original B/L should be treated exactly like cash and never released before the payment terms are met.

C
CBM
Cubic Metre

The standard unit of volume in shipping, calculated as length by width by height in metres. LCL freight is quoted per CBM or per tonne, whichever earns the carrier more revenue — this is called chargeable weight.

CFR
Cost and Freight

An Incoterm under which the seller pays ocean freight to the destination port, but risk passes to the buyer once the goods are loaded at origin. The buyer arranges marine insurance and files any claim for damage at sea.

CIF
Cost, Insurance and Freight

An Incoterm under which the seller pays both the freight and the marine insurance to the destination port. Risk still passes at origin, but the seller's policy covers the voyage, so the buyer can claim for damage at sea.

CIP
Carriage and Insurance Paid To

An Incoterm under which the seller pays both the carriage and the insurance to a named place inland, and not only to a port. It suits container loads that travel on after arrival, and the cover runs the whole way there.

COO
Certificate of Origin

A document certifying the country in which goods were produced. Customs requires it, and it often decides the duty rate that applies. In India it is issued by authorised bodies such as the Export Inspection Council or APEDA.

CPT
Carriage Paid To

The same as CIP but without any insurance. The seller pays carriage to a named place and the buyer arranges its own cover. Risk passes when the goods reach the first carrier, not when they reach that place.

D
DDP
Delivered Duty Paid

The seller takes the shipment through export clearance, international freight and import clearance, pays duties and taxes, and delivers it to the agreed destination. This leaves the buyer with little shipping to arrange.

DEM
Demurrage

A penalty the shipping line charges when a full import container stays at the port or terminal beyond the free time allowed, which the shipping line sets. It adds up every day, so check the free time before you book.

DET
Detention

A penalty charged when a container is held outside the port — at a warehouse or a factory — beyond the free time allowed. It is separate from demurrage, and both can run together if customs clearance is delayed.

DP
Documents Against Payment

A payment method in which the seller ships first, then sends the documents to the buyer through the banks. The buyer pays, and only then are they released to clear customs. Cheaper than an L/C, riskier for the seller.

E
ETA
Estimated Time of Arrival

The date a vessel is expected to reach the destination port. It changes with weather, port congestion and schedule updates, so always keep a buffer around it when planning warehouse intake or onward delivery.

ETD
Estimated Time of Departure

The scheduled date a vessel leaves the port of loading. The whole pre-shipment plan works backwards from it, including production, inspection and documents. It is confirmed once the shipping booking is made.

EXW
Ex Works

Under EXW, the seller only packs the goods and has them waiting at the agreed packing warehouse on time. From there, the buyer arranges pickup and loading, inland transport, export customs clearance, ocean freight and insurance, and carries the risk from the moment the cargo is ready for collection. In return, the importer gets full control over the route and the costs, so it suits those who have a trusted agent in India to take care of the paperwork.

F
FCA
Free Carrier

The seller clears the goods for export and delivers them to the buyer’s chosen carrier at the agreed place. Risk passes to the buyer at that handover, so the named delivery point should always be clearly agreed in advance.

FCL
Full Container Load

A shipment that fills a whole container, whether 20ft, 40ft or 40ft High Cube. You pay one flat rate however full it is, which works out cheaper than LCL above roughly 14 to 15 CBM, and customs clearance is simpler.

FOB
Free On Board

The most common Incoterm in Indian agro exports. The seller takes the goods to the named port of loading and puts them on board the vessel. From that point every cost and risk is the buyer's, including the ocean freight.

FSSAI
Food Safety and Standards Authority of India

India's central regulator for food safety. Every business that makes, handles or exports food in India must hold a valid FSSAI licence or registration, and any licence number can be checked on the FSSAI website.

H
HACCP
Hazard Analysis and Critical Control Points

A step-by-step approach to food safety that finds the points in production where biological, chemical or physical hazards have to be controlled. Most serious food safety standards are built on it, including ISO 22000.

HS Code
Harmonized System Code

A code that classifies goods for customs, with six digits shared worldwide. It sets the duty rate, the paperwork required and any import restrictions, so an incorrect code causes delays. Confirm it with your broker.

L
L/C
Letter of Credit

The buyer’s bank commits to pay the seller when the documents required under the L/C are presented correctly and on time. A confirmed L/C adds a second bank’s commitment, giving the seller added payment security.

LCL
Less than Container Load

A shipment that shares container space with cargo from other shippers, charged per CBM or per tonne. It suits small loads, but above roughly 14 to 15 CBM it costs more per unit than a full container load does.

M
MOQ
Minimum Order Quantity

The smallest quantity an exporter will accept as a single order. It exists because every shipment carries the same fixed costs, whatever its size. Documentation, inspection, customs clearance and freight handling do not get any cheaper on a small order, so the cost per kilogram rises sharply. At Antaara the minimum is one container, and you can fill it with several products in one mixed load, so even a smaller buyer can easily order with us.

P
PSI
Pre-Shipment Inspection

An independent inspection of the goods at the warehouse before anything is loaded. An agency such as SGS, Bureau Veritas or Intertek counts and weighs the cargo, looks at the packing and marking against the contract, and sends its report straight to the importer. If it finds a problem, the lot can be fixed or replaced before the container leaves. The buyer arranges and pays for the agency's visit, which usually costs only a few hundred dollars.

S
SPS
Sanitary and Phytosanitary Measures

The WTO rules that cover food safety and plant and animal health. They let an importing country set its own limits for pests, residues and contamination, which is why the same product can clear one market and be stopped at the border in another. An SPS certificate confirms that a consignment meets those limits, and most regulated markets will not release an agricultural import unless the certificate is already on the file when the cargo arrives.

T
TT
Telegraphic Transfer

A direct bank-to-bank wire transfer and one of the fastest and simplest ways to settle an export payment. The buyer instructs their bank using the beneficiary and SWIFT details provided for the order. The payment may pass through one or more intermediary banks before reaching the seller, so timing and charges can vary. Payment is treated as received only once the funds are credited to the seller’s account, not when the buyer sends it.

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