Export Trade Terms Glossary: 20 Terms on Cosmetics Documents

The export trade terms you will meet most on cosmetics quotations and shipping documents are MOQ, PCS, CTN, the Incoterms® rules (EXW, FCA, FOB, CIF, DAP, DDP), PI, CI, PL, B/L, AWB, HS code, certificate of origin and SDS.

Each belongs to a particular stage of the deal, so they are easiest to learn in order: quotation, order and payment, shipment, then customs. This glossary explains 20 terms in one line each and notes the document where you will see them.

Stage 1: Terms you see at quotation

1. MOQ (minimum order quantity): the smallest quantity a supplier accepts per order. It varies by product and brand and appears on quotations or price lists; confirm it when you ask for a quote.
2. PCS (pieces): the unit for single items, used in the quantity column of quotations and proforma invoices.
3. CTN (carton): the outer shipping box. Quotations and packing lists show the pieces per carton, e.g. “1 CTN = x PCS”.
4. Incoterms® rules: eleven three-letter trade terms published by the International Chamber of Commerce that clarify the tasks, costs and risks of delivering goods from seller to buyer (ICC). The US International Trade Administration’s Know Your Incoterms notes that they do not set the method or timing of payment, or when title passes.
5. EXW (Ex Works): the seller makes the goods available at a named place, such as its warehouse; the buyer handles transport from there.
6. FCA (Free Carrier): the seller hands the goods to a carrier nominated by the buyer at a named place.
7. FOB (Free on Board): the seller delivers the goods on board the vessel at the named port of shipment; for sea and inland waterway transport only.
8. CIF (Cost, Insurance and Freight): the seller pays freight and insurance to the named port of destination; also sea and inland waterway only. The ICC states that Institute Cargo Clauses (C) remain the default level of cover under CIF (Incoterms® 2020).
9. DAP / DDP: under DAP the seller delivers at the named destination ready for unloading; under DDP it also handles import clearance and pays import duties.

The same ITA page groups the eleven rules into those for any mode of transport (EXW, FCA, CPT, CIP, DAP, DPU, DDP) and those for sea and inland waterway (FAS, FOB, CFR, CIF). Cost splits are compared in FOB vs EXW vs DDP.

Stage 2: Terms you see at order and payment

10. PO (purchase order): the buyer’s order stating quantities and terms.
11. PI (proforma invoice): the seller’s preliminary invoice before the deal is final, listing products, quantities, prices and payment terms; often the basis for a deposit.
12. T/T (telegraphic transfer): an international bank transfer, shown as the payment term on the PI.
13. L/C (letter of credit): a bank’s undertaking to pay against specified documents, which must match the credit exactly. See T/T vs letter of credit.

Stage 3: Terms you see at shipment

14. CI (commercial invoice): the formal invoice issued at shipment and the core customs document. Compared in proforma vs commercial invoice.
15. PL (packing list): lists products, quantities, weights and volumes by carton; submitted with the CI.
16. B/L (bill of lading): issued by the shipping line or forwarder in sea freight as evidence that it has received the goods.
17. AWB (air waybill): the International Air Transport Association describes it as constituting the contract of carriage between the shipper and the airline (IATA e-AWB).
18. ETD / ETA: estimated time of departure and arrival, shown on shipping advice and transport documents.

Stage 4: Terms you see at customs

19. HS code: the World Customs Organization’s Harmonized System classifies more than 5,000 commodity groups with six-digit codes and is used by more than 200 countries and economies (WCO); countries add further digits. It appears on the CI and customs declarations.
20. C/O (certificate of origin) and SDS (Safety Data Sheet): a C/O proves where goods originate and is needed for preferential FTA tariffs or when the importing country asks for it. An SDS (formerly MSDS) sets out hazard and handling information; forwarders often request it for air freight.

Export trade terms glossary: which document shows which term

Swipe sideways to see the whole table.

With a new supplier, check first that you both read the quantity units and the Incoterms® rule the same way. “FOB” with a different port of shipment means different costs.

Related pages: Brands we supply · FAQ · Contact us · Proforma vs commercial invoice · Cargo insurance for cosmetics · Damaged shipment claims

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