Sourcing & import glossary
Plain-English definitions of the trade, shipping, customs, and sourcing terms every handicraft importer runs into — from MOQ and Incoterms to CITES and REACH.
- AD Code
- Authorised Dealer Code — a code from your bank, registered at the port/ICEGATE, that links your export shipments to the bank account receiving foreign payment. Required before your first export. Read more →
- BCD
- Basic Customs Duty — the primary duty levied on goods imported into India, set by the item's ITC-HS classification. IGST and surcharges apply on top. Read more →
- Bill of Entry · BoE
- The declaration an importer (or their broker) files on ICEGATE to clear imported goods through Indian customs — the import counterpart of the shipping bill. Read more →
- Bill of Lading · B/L
- A carrier's document that is a receipt for goods, a contract of carriage, and (for an order B/L) a document of title. Needed to release cargo at the port.
- BIS
- Bureau of Indian Standards — India's standards body. Certain imported and domestic products need BIS certification; the CRS scheme mandates registration for listed goods. Read more →
- CBIC
- Central Board of Indirect Taxes and Customs — the authority administering Indian customs and GST. The reference for duty rates and customs procedure.
- CHA
- Customs House Agent (customs broker) — a licensed agent who files customs documents and clears shipments on an importer/exporter's behalf.
- CIF
- Cost, Insurance and Freight — an Incoterm where the seller pays freight and insurance to the destination port; the buyer covers duty and onward transport. Read more →
- DGFT
- Directorate General of Foreign Trade — the body under the Ministry of Commerce that issues the IEC, runs the Foreign Trade Policy, and administers export schemes. Read more →
- Duty Drawback
- A refund of customs and central duties paid on inputs used to make exported goods. Claimed by Indian exporters at prescribed rates. Read more →
- eBRC
- electronic Bank Realisation Certificate — the digital proof, issued via your bank, that export proceeds have been received. Needed to claim benefits and close the shipment. Read more →
- EOU
- Export Oriented Unit — a scheme for units that export their entire production, with duty benefits on inputs.
- EPCH
- Export Promotion Council for Handicrafts — the council supporting Indian handicraft exporters through RCMC, the IHGF trade fairs, and market development. Read more →
- FEMA
- Foreign Exchange Management Act — the RBI-administered law governing foreign-currency transactions, including how exporters receive and importers remit payments.
- FOB
- Free On Board — an Incoterm where the seller delivers goods onto the vessel at the Indian port; the buyer pays freight, insurance, and import duties from there. Read more →
- Foreign Trade Policy · FTP
- DGFT's multi-year policy framework setting India's export/import schemes, incentives, and procedures. Read more →
- GI Tag
- Geographical Indication — protects craft products tied to a place and reputation (e.g. Kashmir Pashmina, Channapatna toys). A premium and authenticity signal for buyers. Read more →
- GST
- Goods and Services Tax — India's indirect tax. Exports are zero-rated; importers pay IGST at customs. See LUT and refunds for exporters. Read more →
- HS / ITC-HS Code
- The Harmonized System product code; India's ITC-HS extends it to 8 digits and drives duty and import/export policy for each item. Read more →
- ICEGATE
- Indian Customs EDI Gateway — the portal for filing shipping bills, bills of entry, and duty payments with Indian customs. Read more →
- IEC
- Importer Exporter Code — a 10-digit code from DGFT (linked to your PAN) that every Indian business needs to import or export. The first registration to get. Read more →
- IGST
- Integrated GST — the GST levied on inter-state supplies and on imports into India (collected at customs), creditable against output tax. Read more →
- Incoterms
- ICC International Commercial Terms (current edition 2020) defining who bears cost, risk, and tasks at each shipment stage — EXW, FOB, CIF, DAP, DDP, etc. Read more →
- Letter of Credit · L/C
- A bank guarantee that the seller is paid once compliant shipping documents are presented. Common on larger or first-time export/import deals. Read more →
- LUT
- Letter of Undertaking — the GST filing that lets an exporter ship goods without paying IGST upfront (zero-rated), avoiding the refund cycle. Read more →
- MOQ
- Minimum Order Quantity — the smallest quantity a supplier will produce per order; reflects production economics and is sometimes negotiable.
- RCMC
- Registration-cum-Membership Certificate — issued by an export promotion council (e.g. EPCH) and often needed to claim export benefits. Read more →
- RoDTEP
- Remission of Duties and Taxes on Exported Products — a scheme refunding embedded duties/taxes on exports; it replaced MEIS. Rates are notified per ITC-HS. Read more →
- SEZ
- Special Economic Zone — a duty-free enclave treated as foreign territory for trade, with tax and customs benefits for exporters.
- Shipping Bill
- The declaration an exporter (or broker) files on ICEGATE to clear goods for export from India — the export counterpart of the bill of entry. Read more →
- TT
- Telegraphic Transfer — a bank wire, the most common trade payment (often advance + balance), governed for Indian traders by FEMA/RBI rules. Read more →
Go deeper
Our sourcing knowledge base has step-by-step import guides, regulation deep-dives, and country playbooks.
Browse all guides →