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 →
Advance Payment: Part of the order value wired before production, typically 25–30% on a first handicraft order. It funds raw material and signals commitment; under FEMA the exporter must ship within the period the RBI allows against an advance. Read more →
amfori BSCI: The Business Social Compliance Initiative code, now run by amfori — the audit most European retail buyers ask an Indian exporter for. Graded A–E; buyers typically want C or better, with a corrective action plan for anything lower. Read more →
Authorised User: A producer entered on the GI register as entitled to apply the tag. This is the status to ask an exporter for: 'GI product' means the craft is registered, 'authorised user' means this seller may legitimately label it. Read more →
Bandhani: Gujarati/Rajasthani tie-dye: cloth is pinched and tied into thousands of tiny knots before dyeing, leaving dotted patterns. Knot count per square inch drives both price and grade. 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 →
Block Print: Hand-carved teak blocks stamped in sequence, one block per colour (Sanganeri, Bagru). Slight registration drift and colour variance between repeats are marks of hand printing, not rejects. Read more →
Blue Pottery: Jaipur's quartz-body ceramic — it contains no clay, so it is fired low and stays slightly porous. The cobalt-blue palette is characteristic; hairline crazing is inherent, not a defect. 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.
Chain of Custody: The documented trail linking finished goods to certified inputs — FSC for wood, GOTS for organic cotton, recycled-content claims. Without it, a certified input does not entitle you to a certified claim on the finished product. Read more →
Channapatna: Karnataka's GI-tagged lacquered wood toys, turned from soft ivory-wood and coloured with food-safe vegetable lacquer — which matters for EN71/CPSIA when exporting to toy markets. Read more →
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 →
Craftmark: An AIACA mark certifying genuine handmade Indian craft and disclosing the technique and producing community — a provenance signal for buyers who need to substantiate 'handmade' claims at retail. 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 →
Dhokra: Bastar's lost-wax brass casting: a wax model is encased in clay, melted out, and replaced with molten brass — one mould, one piece. Every casting is unique, so 'variation' is the product, and MOQ reflects mould time. Read more →
Documentary Collection · D/P, D/A: Payment routed through banks against documents rather than a bank guarantee. Documents Against Payment releases the B/L only when the buyer pays; Documents Against Acceptance releases it against a promise to pay later. Cheaper than an LC, weaker protection. 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 →
ECGC Cover: Export Credit Guarantee Corporation insurance against buyer default or country risk. Standard practice when shipping on open account or documentary collection to a new buyer. Read more →
EEFC Account: Exchange Earners' Foreign Currency account — lets an Indian exporter hold export proceeds in foreign currency instead of converting immediately, useful when you also import inputs in the same currency. 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 →
Forward Contract: A bank contract fixing today's rate for a future foreign-currency receipt. On a 10-week handicraft lead time, rupee movement can erase the margin, so larger orders are often booked forward. 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 →
Handloom Mark: A Government of India mark certifying fabric was woven on a handloom rather than a powerloom. Relevant because handloom and powerloom cloth are visually close but priced and classified differently. Read more →
Homeworker Traceability: Documenting the home-based artisans behind an order — the norm in Indian craft, where embroidery and weaving are done in villages rather than on a factory floor. Buyer audits increasingly require a mapped homeworker list, since an unmapped tier reads as hidden subcontracting. 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 →
LC Discrepancy: Any mismatch between the presented documents and the letter of credit's terms — a misspelt consignee, a late shipment date, a missing certificate. Banks refuse on discrepancy, so the LC text should be checked line by line before production starts. 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 →
Madhubani (Mithila): Bihar's line-and-fill painting on paper, cloth, or canvas using natural pigments and double-line outlines. Priced by detail density and surface, not size alone. Read more →
MOQ: Minimum Order Quantity — the smallest quantity a supplier will produce per order; reflects production economics and is sometimes negotiable.
Moradabad Brass: India's brass belt in western UP — sand-cast or sheet-formed, then hand-engraved, buffed, and lacquered or antiqued. Finish (antique, nickel, powder-coat) drives much of the unit price. Read more →
Open Account: Goods shipped and documents released before payment, settled on agreed credit terms. Normal between established partners and the usual demand from large retail buyers — but it puts the whole risk on the exporter. Read more →
Packing Credit · PC / PCFC: A pre-shipment working-capital loan against a confirmed export order, at concessional rates. Pre-shipment Credit in Foreign Currency is the forex-denominated version, which also hedges the receivable. Read more →
Pashmina: Fine Changthangi goat undercoat, roughly 12–16 microns — finer than standard cashmere. Kashmir Pashmina carries a GI; much market 'pashmina' is blended or viscose, so confirm fibre content before export. Read more →
Pietra Dura: Agra's marble inlay: coloured semi-precious stones cut to shape and set flush into a marble ground, then polished — the Taj Mahal tradition. Inlay density and stone type set the price. Read more →
Proforma Invoice · PI: The exporter's formal offer: specification, quantity, unit price, Incoterm, lead time, payment terms and bank details. Signing it is what turns a quote into an order, and it is the document a buyer's bank works from to open an LC. Read more →
RCMC: Registration-cum-Membership Certificate — issued by an export promotion council (e.g. EPCH) and often needed to claim export benefits. Read more →
Registered Proprietor: The body that holds a GI registration — usually a craft association, cooperative or state agency, never a single company. A firm cannot own a GI; it can only be authorised to use one. 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 →
SA8000: A certifiable social-accountability standard covering child labour, forced labour, working hours, wages and freedom of association. Heavier than a SMETA audit because it certifies a management system, not a snapshot. Read more →
Saharanpur Carving: UP's sheesham (Indian rosewood) carving cluster. Because it is a hardwood, moisture content and ISPM-15-compliant packing matter on long sea legs — and rosewood species can raise CITES questions. Read more →
Sedex / SMETA: Sedex is the shared database of supplier ethical data; SMETA is the audit methodology run against it, in 2-pillar (labour, health & safety) or 4-pillar (adding environment and business ethics) form. Buyers specify which pillars they need. 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 →
Sight vs Usance LC: A sight LC pays on presentation of compliant documents; a usance (deferred) LC pays 30–180 days after. Usance is effectively the exporter financing the buyer, so it should be priced into the unit rate. Read more →
Silk Mark: A Silk Mark Organisation of India label certifying pure natural silk. Blended and art-silk goods are widely sold as silk, so the mark (or a fibre test report) is the practical check before a bulk order. 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 →
WFTO: World Fair Trade Organization — membership certifies the whole enterprise as a fair-trade organisation rather than certifying a product. The usual route for artisan cooperatives, which have no commodity to certify. Read more →
Zari: Metallic thread (historically gold/silver, now largely metallised polyester) woven or embroidered into textiles. Declare the actual thread composition — it affects both classification and buyer expectations. Read more →

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