Knowing key logistics terms is extremely important when you start shipping activities for your ecommerce business. Supply Chain or Logistics is a system where manufactured products are dispatched and delivered to the consumers, the last person in the supply chain, with various modes of transportation.

1. Important and Commonly Used Logistics terms you
should know.
By eCourierz.com -
Knowing key logistics terms is extremely important when
you start shipping activities for your ecommerce
business.
Supply Chain or Logistics is a system where
manufactured products are dispatched and delivered to
the consumers, the last person in the supply chain, with
various modes of transportation. This involves multiple
activities from order procuring, processing, storage and
fulfillment. To build an efficient business, its eminent that
you familiarize yourself with the following terms :

2. AWB - Air way Bill
Document used for the proper identity of the goods or parcel
which is exported or transported through airway mode. It
consist of a 11 digit code which helps the consignor and the
consignee or the agent can easily track out and check the
status of the goods parceled.
MAWB
MAWB is Master airway bill issued by main carrier of goods
on receipt of goods from a freight forwarder to deliver at
destination as per agreed terms.
HAWB
HAWB means House airway bill issued by a Shipping Carrier
or forwarder on receipt of goods from shipper agreeing to
deliver goods at destination.
COD

3. Cash on Delivery is a method of payment which is commonly
used in eCommerce industry that helps the customer to make
the payment at the time of receiving the goods/ product.
PREPAID
2 Scenarios -
Freight charges with regards to a consignment is paid in
advance.
or
Product value amount is paid in advance to the seller.
PICKUP Manifest
A printed Document that contains all the details of your
shipment along with the tracking number to be used to take
acknowledgment from the courier person that the pick up is
completed for so and so orders. Courier person has to sign the
copy adding the date of the pick up on the document. Manifest
should be with the shipper and used for future reference.
ETA – Estimated Time of Arrival
The approximate time a truck, train or a shipment is expected
to arrive at a location.

4. Chargeable Weight
The shipment weight used in determining freight charges. The
chargeable weight may be the dimensional weight or the gross
weight of the shipment, whichever is higher amongst these
will be billed and is known as chargeable weight.
POD - Proof Of Delivery
Document to confirm the fact that the consignee has received
the shipment sent by the shipper. This document contains
delivery date, signature or seal and consignee name and other
details.
RTO (Return To Origin) RTS- Return to shipper
Return to Origin or Return to Shipper: It is also called
Reverse Logistics. It is the situation where the package is
undelivered due to various reasons like non availability of
receiver, rejection of package, default in payment etc. and will
be ultimately returned to the origin or shipper.
ODA/ OPA- Out of Delivery Area/ Out of Pickup Area /
Remote Area Surcharge (RAS)

5. Area/Pincode which has been marked as serviceable under
terms & conditions due to the limited resources available to
deliver the parcel at that location. Additional charges will be
applicable for arranging delivery / pick up from these
locations.
Demurrage
The carrier charges and fees applied when rail freight cars and
ships are retained beyond a specified loading or unloading
time.
Embargo
A prohibition upon exports or imports, either with specific
products or specific countries.
Harmonized Commodity Description & Coding System
(Harmonized Code)
An international classification system that assigns
identification numbers to specific products. The coding
system ensures that all parties in int'l. trade use a consistent

6. classification for the purposes of documentation, statistical
control, and duty assessment.
Air Mode & Surface Mode
These are the various modes of transportation in terms of
shipment of goods.
If the shipment is carried through Air which helps for faster
delivery can be called as Air Mode. And if the shipment is
transported by means of Road and Rail mode can be treated as
Surface Mode.
Exception
The exception of your shipment appears in tracking if your
shipment is undelivered to consignee due to various reasons.
Prohibited List of Items
There are various goods or items which are prohibited or
restricted for import or export as per the IATA guidelines. It
includes drugs, cash, jewelry, explosives, hazardous goods
etc.

7. Dangerous Goods
Articles or substances capable of posing a significant risk to
health, safety, or property, and that ordinarily require special
attention when transported.
Packing List
A packing list is a document that includes details about the
contents of a package. The packing list is intended to let
transport agencies, government authorities, and customers
know the contents of the package. These details help each of
these parties handle the package accordingly.
Commercial Invoice
The commercial invoice is a legal document between the
supplier and the customer that clearly describes the sold goods
and the value of the goods. The commercial invoice is one of
the main documents used by customs in determining customs
duties also.
BANK AD CODE Registration for Commercial Exports

8. An Authorized Dealer Code (AD Code) is a 14-digit
numerical code provided by a bank with which your business
has a current account. You will need to register an AD Code
at every port from where your goods are cleared by customs.
A registered AD Code is essential for customs clearance. If
you do not have one, you will not be able to generate your
shipping bill number, which is compulsory for customs
clearance.
IE CODE & IE CERTIFICATE
Import Export (IE) Code is a registration required for
importing or exporting goods and services from India. IE
Code is issued by the Directorate General of Foreign Trade
(DGFT), Ministry of Commerce and Industries, Government
of India. Its also known as Import Export Certificate.
3PL – Third Party Logistics
Logistics services which are outsourced to a company or a
third party agency who take care of shipping activities of a
business.
Customs

9. The official department that administers, inspects the goods
and collects the applicable taxes and duties levied
by government on exported or imported goods.
Customs Duty
Customs duty is a tax that people pay for importing and
exporting goods.
Import & Exports
Imports in an international trade, are foreign goods and
services bought by residents of a country. Residents include
citizens, businesses, and the government.
Exports are the goods which are shipped or sold outside the
country.
Certificates and Declarations
commonly used while shipping
FDA - Food and Drug Administration, is a federal agency of
the United States Department of Health and Human Services.
The agency is separated into divisions that oversee a majority

10. of the organization's obligations involving food, drugs,
cosmetics, animal food, dietary supplements, medical devices,
biological goods, and blood products.
FSSAI - Food Safety and Standards Authority of India,
established under the Ministry of Health & Family Welfare.
FSSAI is also responsible for protecting and promoting public
health through the regulation and supervision of food safety.
Lithium Battery Declaration - is a declaration required for
shipping Lithium Battery.
Quarantine Certificate - The purpose and scope of setting up
of Quarantine Certification is to prevent the ingress of
dangerous exotic diseases into the country through imported
live plants, livestock and products.
Leather and Wildlife Clearance - is required from
concerned authority to ship wild life products in a normal
scenario since it is a prohibited goods to export.
Fumigation Certificate - sometimes referred to as a pest-
control certificate, is a document that serves as confirmation
that any wooden packing materials (ie, pallets) used in a cargo
shipment have been fumigated. They contain details such as
treatment purpose, fumigants used, and temperature range.

11. MSDS certificate - Material Safety Data Sheet is a document
that contains information on the potential health effects of
exposure to chemicals, or other potentially dangerous
substances, and on safe working procedures when handling
chemical products.
NON DG Certificate - Non Dangerous Goods Certificate is a
declaration from the shipper that the concerned package is not
consist of any potentially hazardous or dangerous in nature.
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