Export Without Confusion: Common Export Terms Explained Simply

Understanding export terms is the first step toward successful international trade. This simple guide explains commonly used export terms to help beginners export legally and confidently from Pakistan.

A. General Export & Trade Terms

Export – Selling goods or services to another country
Importer – Person or company buying goods from another country
Exporter – Person or company selling goods internationally
International Trade – Buying and selling between countries
Cross-Border Trade – Trade across national borders
Trade Compliance – Following trade laws and regulations
Export Documentation – Official papers required for export
Customs Clearance – Process of getting goods approved by customs

B. Business & Legal Terms

NTN (National Tax Number) – Tax registration in Pakistan
SECP – Securities and Exchange Commission of Pakistan
Chamber of Commerce – Trade body supporting exporters
Exporter Registration – Official registration with customs
Trade License – Permission to conduct business
Contract – Legal agreement between buyer and seller
Purchase Order (PO) – Buyer’s official order document

C. Commercial Documents Terms

Commercial Invoice – Seller’s bill to the buyer
Proforma Invoice – Quotation sent before shipment
Packing List – Details of packaging, weight, and quantity
Sales Contract – Export agreement between parties
Certificate of Origin (COO) – Confirms country of manufacture
Inspection Certificate – Confirms goods meet quality standards

D. Shipping & Logistics Terms

Bill of Lading (B/L) – Shipping document issued by shipping line
Airway Bill (AWB) – Shipping document for air cargo
Freight – Cost of transporting goods
Freight Forwarder – Company arranging shipment
Clearing Agent – Handles customs clearance
Consignment – Goods being shipped
Shipment – Act of sending goods
Container – Large box used for sea cargo
FCL (Full Container Load) – One exporter uses full container
LCL (Less than Container Load) – Shared container shipment

E. Incoterms (International Commercial Terms)

Used to define responsibility, cost, and risk between buyer and seller:

EXW (Ex-Works) – Buyer handles everything from seller’s location
FOB (Free on Board) – Seller delivers goods to ship
CIF (Cost, Insurance & Freight) – Seller pays transport & insurance
CFR (Cost and Freight) – Seller pays transport only
DAP (Delivered at Place) – Seller delivers to buyer’s location
DDP (Delivered Duty Paid) – Seller pays all costs & duties

F. Banking & Payment Terms

Letter of Credit (LC) – Bank-guaranteed payment method
Advance Payment – Buyer pays before shipment
Bank Transfer (TT) – Electronic money transfer
E-Form – Export proceeds declaration in Pakistan
Export Proceeds – Money received from export
Foreign Exchange (FX) – International currency
Invoice Value – Total value of goods sold

G. Customs & Regulatory Terms

HS Code (Harmonized System Code) – Product classification code
Customs Duty – Tax imposed on imports
Tariff – Rate of customs duty
Non-Tariff Barriers – Regulations other than duties
Export License – Permission for restricted items
Restricted Goods – Goods requiring special approval
Prohibited Goods – Goods not allowed for export

H. Pakistan-Specific Export Systems

PSW (Pakistan Single Window) – Digital export platform
WeBOC – Customs online clearance system
FBR – Federal Board of Revenue
TDAP – Trade Development Authority of Pakistan
CDC Account – Central Depository Company account (for PSX exporters too)

I. Product-Specific & Compliance Terms

FDA Approval – Required for food/medical exports to USA
CE Marking – Required for EU markets
Halal Certification – For halal food exports
ISO Certification – International quality standard
Phytosanitary Certificate – For agricultural products
Health Certificate – For food and medical items

J. Risk & Insurance Terms

Cargo Insurance – Insurance for goods in transit
Marine Insurance – Insurance for sea shipments
Risk Management – Controlling export risks
Force Majeure – Uncontrollable events clause

K. Trade Support & Market Terms

Trade Fair / Expo – Exhibition for buyers and sellers
B2B (Business to Business) – Company-to-company trade
B2C (Business to Consumer) – Direct selling to consumers
Market Access – Ability to sell in a country
Buyer Verification – Checking buyer credibility

Important Note

This list covers general export terms.
Actual usage and requirements may vary based on product type, destination country, and trade regulations.