Guide to international trade terms

International trade uses specific terminology that can be complex. This glossary collects the most important terms you will encounter in customs operations, transport documents and import/export procedures.

ADR
European Agreement concerning the International Carriage of Dangerous Goods by Road. Defines hazard classes, packaging, labelling and required documentation.
AEO
Authorised Economic Operator. Customs status certifying the reliability of an economic operator, providing facilitations and simplifications in customs operations.
AWB
Air Waybill. Air transport document that serves as a contract between the forwarder and the airline.
B/L
Bill of Lading. Document certifying receipt of goods on board a vessel, serving as title of ownership and contract of carriage.
CMR
Convention on the Contract for the International Carriage of Goods by Road. International consignment note for road freight transport.
DAD / DDA
Authorised Customs Warehouse. Warehouse authorised by customs for the storage of goods under suspension of duties and taxes.
Passar
Swiss electronic customs declaration system. Allows digital transmission of import and export declarations to the FOCBS.
EUR.1
Movement certificate attesting the preferential origin of goods. Allows benefit from reduced or zero customs duties.
FCL
Full Container Load. The entire container is dedicated to a single shipper.
FTL
Full Truck Load. The entire vehicle is dedicated to a single shipper.
HAWB
House Air Waybill. Air waybill issued by the forwarder for their own consolidated shipments.
HS Code
Harmonized System Code. International numerical code identifying every type of goods for customs purposes.
VAT
Value Added Tax. In Switzerland the standard rate is 8.1%, reduced to 2.6% for essential goods.
LCL
Less than Container Load. Goods from different shippers are consolidated in a single container.
LTL
Less Than Truckload. Goods from different shippers are consolidated on a single vehicle.
MFN
Most Favoured Nation. Standard customs tariff applied to all WTO members without preferential agreements.
MRN
Movement Reference Number. Unique identification code assigned to each customs transit operation.
NCTS
New Computerized Transit System. Computerised system for managing customs transits in the EU and EFTA countries.
Preferential origin
Goods status that, based on trade agreements, allows reduced or zero customs duties between contracting countries.
Customs clearance
Import or export customs procedure allowing goods to enter or leave the customs territory.
T1 / T2
Customs transit documents. T1 for non-Union goods in transit through the EU, T2 for Union goods in transit through a third country.
TIR
Transports Internationaux Routiers. International convention simplifying customs formalities for the transit of goods by road across multiple countries.
WTO
World Trade Organization. International body regulating trade between nations.