The Ultimate Guide to Customs, Compliance and Global Trade Acronyms (for Crossing Borders Like a Pro)
- Danyul Gleeson
- May 21
- 5 min read
Because INCOTERMS and HTS codes shouldn’t require a law degree and a crystal ball
Introduction: The Supply Chain Border Battle
International trade is a lot like travelling abroad with a suitcase full of suspicious snacks. You might have the goods, but if the paperwork’s wrong? Welcome to Customs Limbo—population: your shipment.
Behind every successful global delivery is a bureaucratic symphony of acronyms: INCOTERMS, HS codes, CBP, FTA, COO, ECCN... It’s less “supply chain” and more “acronym alphabet soup with a side of export fines.”
But mastering these acronyms isn’t just about getting your freight unstuck—it’s how global businesses reduce risk, dodge duties, accelerate delivery, and sleep better at night.
So here it is: your in-depth, 50+ acronym cheat sheet for international logistics. Customs agents may not smile often, but if you know this list, they might just wave your goods through with a nod.
🧾 Customs Clearance Acronyms
HS Code – Harmonised System Code
A six-digit global classification code for products used by customs agencies to apply tariffs.
📦 Like a passport for your product. Get it wrong? You’re paying extra.
HTS Code – Harmonised Tariff Schedule Code
The country-specific version of the HS Code. The U.S. HTS has 10 digits. Other countries tweak it slightly.
CBP – Customs and Border Protection
In the U.S., they’re the agency checking if your imports are legit.
🧑✈️ They don't mess around.
FCL / LCL – Full / Less than Container Load
Impacts customs clearance. FCL = faster, fewer touchpoints. LCL = slower, more chance for delays.
AWB / HAWB – Air Waybill / House Air Waybill
Shipping documents for air freight.
AWB = issued by airline
HAWB = issued by freight forwarder
BOL – Bill of Lading
A legal doc between shipper and carrier. Tells customs who’s shipping what, how, and to whom.
COO – Certificate of Origin
A document stating where the goods are made. Crucial for applying trade agreements or dodging duties.
IOR / EOR – Importer / Exporter of Record
The party legally responsible for customs declarations, duties, and compliance.
POA – Power of Attorney
Allows your customs broker or forwarder to act on your behalf.
CUSCAR – Customs Cargo Report
Used to electronically declare cargo entering or leaving a country.
VGM – Verified Gross Mass
The total weight of a container (cargo + container). Required by SOLAS before shipping.
🌍 International Trade Agreements & Compliance Acronyms
FTA – Free Trade Agreement
Trade pacts between countries that lower or eliminate tariffs. Think NAFTA, CPTPP, EU FTA, etc.
CPTPP – Comprehensive & Progressive Agreement for Trans-Pacific Partnership
Trade deal involving countries like Australia, NZ, Japan, Canada, and more.🔗 Learn how Transport Works supports CPTPP trade »
RCEP – Regional Comprehensive Economic Partnership
The world’s largest trade deal (15 Asia-Pacific countries), covering 30% of global GDP.
GSP – Generalised System of Preferences
Allows imports from developing countries to enter duty-free in some regions.
MFN – Most Favoured Nation
Despite the name, this doesn’t mean you’re special. It’s the baseline tariff given to WTO members.
EXW / FOB / CIF / DDP / DDU – INCOTERMS®
Defines who pays for what—and when ownership/risk transfers.
EXW: You pick it up
FOB: Seller gets it to the ship
CIF: Includes cost, insurance, freight
DDP: Seller pays duties and delivers
DDU: You pay duties when it arrives
✍️ Know your INCOTERMS. Avoid international freight breakups.
🔐 Security & Screening Acronyms
CTPAT – Customs-Trade Partnership Against Terrorism
Voluntary U.S. program that fast-tracks customs clearance for security-compliant shippers.
AEO – Authorised Economic Operator
EU and global program for trusted traders. Less inspections. Smoother border crossings.
ISF – Importer Security Filing (aka “10+2”)
U.S. requirement: 10 data elements from importer + 2 from carrier, submitted 24 hours before ocean cargo sails.
TSA – Transportation Security Administration
Yes, they check passengers and cargo. TSA clearance is required for air freight in many countries.
FROB – Freight Remaining on Board
Cargo that passes through a port but isn’t being offloaded. Still needs customs attention.
📄 Regulations & Export Control Acronyms
ECCN – Export Control Classification Number
Used by the U.S. to classify exports and control where sensitive goods can go.
EAR – Export Administration Regulations
U.S. rules for exporting dual-use items (things that can be civilian or military).
ITAR – International Traffic in Arms Regulations
Controls the export of defence-related goods and tech. High-risk, high-stakes stuff.
HTDU – Harmonised Tariff Description and Coding System Update
A fun annual update where your trusted HS codes change without warning.
SNAP-R – Simplified Network Application Process Redesign
The U.S. system for applying for export licences electronically.
AES – Automated Export System
The U.S. system for filing export declarations. You don’t file? You might get fined.
FMC – Federal Maritime Commission
Regulates ocean carriers and NVOCCs in the U.S. Keeps things legal and not monopoly-ish.
🧠 Smart Tools & Tech Acronyms for Cross-Border Trade
EDI – Electronic Data Interchange
The standard for sending customs forms and shipping data between partners.
API – Application Programming Interface
The modern, faster, more flexible way to integrate customs systems, TMS, and documentation software.
OCR – Optical Character Recognition
Scans and digitises paper forms for smoother filing and compliance.
TMS / ERP / WMS – Core Systems That Sync With Customs
TMS: Tracks freight and integrates with customs
ERP: Handles financials and compliance
WMS: Manages goods, lot numbers, and traceability
KPI – Key Performance Indicator
Even in customs, you need to track clearance times, inspection frequency, document error rates, etc.
SLI – Shipper’s Letter of Instruction
Tells your forwarder exactly what to declare, how, and where.
BIS – Bureau of Industry and Security
U.S. agency regulating exports, especially sensitive tech and restricted countries.
💡 Final Thoughts: Know Your Acronyms, Clear Your Freight
Global trade isn’t for the faint-hearted—or the ill-prepared. But with this arsenal of Customs, Compliance and Global Trade Acronyms, you're equipped to handle customs agents, clearance delays, and international compliance like a seasoned freight diplomat.
Because in today’s supply chain, what you know saves you time, money, and a whole lot of customs-related heartbreak.
📦 FAQs: Customs, Compliance and Global Trade Acronyms
What is the difference between HS code and HTS code?
HS code is the global base; HTS is country-specific. Both are used for tariff and classification.
What does DDP mean in INCOTERMS?
What is the role of ECCN in export compliance?
What does CTPAT certification mean?
Why is COO important in customs?
