Trade & Legal Glossary | Export Terms Explained

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AfCFTA: African Continental Free Trade Area - a free trade agreement among 54 African Union nations to create a single market for goods and services.

Bill of Lading: A legal document issued by a carrier to acknowledge receipt of cargo for shipment. It serves as a receipt, contract of carriage, and document of title.

Certificate of Origin: A document declaring in which country a commodity or good was manufactured, used to determine tariff rates and eligibility for preferential treatment.
CIF (Cost, Insurance, and Freight): An Incoterm where the seller delivers goods on board the vessel and pays costs and freight to bring goods to the port of destination.
Customs Clearance: The process of getting goods through customs so they can enter or leave a country, including documentation, duties, and inspections.

DDP (Delivered Duty Paid): An Incoterm where the seller bears all costs and risks to deliver goods to the buyer's premises, including import duties.

Escrow: A financial arrangement where a third party holds and regulates payment between two parties until the transaction is completed.
EXW (Ex Works): An Incoterm where the seller makes goods available at their premises. The buyer bears all costs and risks from that point.

FOB (Free On Board): An Incoterm where the seller delivers goods on board the vessel nominated by the buyer at the named port of shipment.
Freight Forwarder: A company that organizes shipments for individuals or corporations, arranging transport from manufacturer to market.

HS Code: Harmonized System Code - an international numerical method of classifying traded products used by customs authorities.

Incoterms: International Commercial Terms - standard trade terms published by ICC that define seller/buyer responsibilities in international trade.

Letter of Credit: A bank guarantee that a buyer's payment to a seller will be received on time and for the correct amount.

NDPR: Nigeria Data Protection Regulation - Nigeria's data protection law regulating collection and processing of personal data.

Proforma Invoice: A preliminary bill of sale sent to buyers before goods are delivered, detailing items and costs as an estimate.

RFQ (Request for Quotation): A document used by buyers to request pricing and terms from potential suppliers for specific products or services.
Rules of Origin: Criteria to determine the national source of a product, important for applying preferential tariff rates under trade agreements.

Tariff: A tax imposed on imported goods and services. Tariffs are used to restrict trade and generate revenue.
Trade Assurance: A protection service that safeguards buyers' orders from payment to delivery, ensuring quality and on-time shipment.

Verified Supplier: A seller who has undergone verification of their business credentials, legal status, and trade capacity.