Antidumping

Antidumping measures aim to prevent a product from being distributed in a territory at prices below the manufacturing or importation costs of the same product to that market by a domestic company. Dumping is a commercial tactic that seeks to eliminate competition by undercutting prices, making the business unprofitable for them. In the context of an import contract or outsourcing of production, antidumping clauses are set to prevent the supplier from distributing the same product at lower prices in the buyer’s market.

B2B (Business to Business)

A B2B relationship is one in which both parties, seller and buyer, are legal entities. Therefore, the customer can be an organization that purchases products or services for internal use, or an intermediary that acquires them to sell to third parties.

BL (Bill of Lading)

The bill of lading is a document issued by the shipping carrier once it has taken charge of the cargo. It includes the buyer’s, seller’s, and consignee’s information, cargo contents, ports of origin and destination, and terms of the transportation contract. See the Wikipedia entry on the bill of lading for more information.

Picking 

Picking is, in logistics, the process of removing a product or packaging unit from the warehouse to prepare a customer order. In group purchasing, it applies to the separation and distribution into separate orders of the purchases of each individual company. See the Wikipedia entry on Picking for more information.

BPO (Business Process Outsourcing)

BPO, or Business Process Outsourcing, refers to the contracting of third-party services related to the management and organization of business areas within a company. These services can include procurement management, financial management, or human resources, among others. See the Wikipedia entry on BPO for more information.

CFR (Cost and Freight, named port of destination)

CFR (Cost and Freight) is an Incoterm applicable to cargo transported by sea, except for containerized shipments. It stipulates that the seller bears the risks and costs until the goods are unloaded at the destination port but is not obligated to procure insurance. See the Wikipedia entry on the CFR Incoterm for more information.

CIF (Cost, Insurance, and Freight, named port of destination)

CIF (Cost, Insurance, and Freight) is an Incoterm by which the transportation costs to the destination port, freight, and cargo insurance are included in the purchase price. These costs are therefore borne by the seller. CIF terms apply only to international trade contracts by sea or inland waterway and for general cargo (excluding containers). The transfer of ownership (and risk) occurs on board the ship. See the Wikipedia entry on the CIF Incoterm for more information.

HS Code (Harmonized System Code)

The tariff code is an alphanumeric identifier for types of goods, mandatory in all international trade operations. The tariff classification system allows customs services to know the content of the cargo and determine the rates to be applied in each case. See the Wikipedia entry on tariff classification for more information.

Letter of Credit

A documentary credit is a financial instrument used in international trade to secure payments to the supplier. The bank with which the letter of credit is signed commits to paying or authorizing payment for the goods to the seller under certain conditions. See the Wikipedia entry on documentary credits for more information.

DDP (Delivered Duty Paid)

DDP (Delivered Duty Paid) is the Incoterm that assigns the most responsibilities to the seller. They are responsible for all expenses and procedures until the goods are delivered at the agreed place with the buyer. The buyer’s only obligation is to assist the seller in obtaining import licenses and certificates from the destination country.

Customs clearance

Customs clearance, or customs brokerage, refers to the set of procedures carried out at the customs offices of origin and destination during an import or export process. It includes declaring the fiscal data of the seller and the buyer, detailed cargo contents (packing list, origin and destination, commercial invoice, bill of lading), and inspection certificates.

DUA

The DUA (Single Administrative Document) is a standardized declaration for import or export between a member of the European Union and third countries. It must be presented to customs for the entry or exit of goods from an EU country, so it is also used for transit within the Union when the origin or destination is non-EU. It serves as the basis for the tax declaration.

EORI

The EORI number is an identification code for importers/exporters throughout the European Union. It must be obtained before initiating the first international trade operation, as it is mandatory for customs clearance.

FOB (Free on Board, named port of shipment)

FOB (Free on Board) is one of the most commonly used incoterms in international trade by sea or inland waterway. It stipulates that the transfer of goods from the seller to the buyer occurs on board the vessel designated for transport, and with it, the risk transfers as well. The seller is responsible for arranging transportation to the destination port and completing customs procedures, but both are at the buyer’s expense. The buyer, in turn, is responsible for transporting the goods from the vessel to their warehouses. See the Wikipedia entry on FOB conditions for more information.

Incoterms (International Commercial Terms)

The Incoterms are standardized contract models to regulate the obligations of the buyer and the seller in international trade operations: how delivery is made, who bears the transportation costs, who assumes the risks, and who handles customs procedures. Each Incoterm, identified by a three-letter code, establishes different combinations of these four variables.

VAT Identification Number

The VAT Identification Number (VAT ID) is the fiscal identification code of a company or self-employed individual conducting international commercial transactions within the European Union. It consists of the country code (in our case, ES) followed by the Tax Identification Number (TIN). It is obtained through registration in the ROI (Register of Intra-Community Operators) and VIES (VAT Information Exchange System).

ODM (Original Design Manufacturer)

An ODM (Original Design Manufacturer) is a company that designs and manufactures products for a third party, who will sell them under their own brand. In this way, the buyer outsources both the design and production aspects.

OEM (Original Equipment Manufacturer)

OEM (Original Equipment Manufacturer) is a company that manufactures products for another company, which has designed and will distribute them under its own brand. The customer of these manufacturers is, therefore, a company that creates its own products or components but outsources their manufacturing. See the Wikipedia entry on OEM for more information.

Outsourcing, subcontracting, or production outsourcing

The term outsourcing refers to situations in which a company contracts another to carry out certain processes or business areas. Production outsourcing or outsourcing is when a company hires another to manufacture its products or components to sell them under its own brand. The purchased product can be either part of the manufacturer’s existing catalog or a custom-made piece according to the buyer’s specifications and/or design.

QMS (Quality Management System)

A Quality Management System (QMS) is a set of procedures and actions aimed at ensuring the quality of a product or service, the efficiency and effectiveness of processes, and ultimately, customer satisfaction. It involves planning, control, and evaluation of all elements comprising a specific business process or the overall activity of the organization. In some sectors, quality management must comply with standardized regulations. See the Wikipedia entry on Quality Management Systems for more information.

Product Liability

Product liability insurance is a policy that protects the manufacturer or distributor against damages caused to third parties. The affected parties can be end consumers or employees of distribution and sales channels. In the event that the product causes any type of injury or harm, the insurance would cover part or all of the resulting expenses, depending on the scope of the policy (product replacement, indemnities, legal representation, etc.).

RFI (Request for Information)

The Request for Information is a formal, standardized request for information sent to one or multiple suppliers to assess if they have the capability to provide the desired product or service under suitable conditions.

RFP (Request for Proposal)

The Request for Proposal is a formal request to a potential supplier of products or services to prepare a proposal. It differs from a simple request for a quote in that the seller must make a proposal detailing aspects such as materials to be used, manufacturing procedures, finishes, or packaging, for example.

RFQ (Request for Quotation)

A Request for Quotation (RFQ) is a formal, standardized request for prices of products or services from one or more potential suppliers. It is typically used for quantifiable items and predefined concepts. For manufacturing products based on a custom design, a Request for Proposal (RFP) is more appropriate.

ROI

The Intracommunity Operators Registry is the census of companies and self-employed individuals eligible to trade their products or services in other European Union countries. Registration is mandatory for operating within the EU and involves enrollment in the VIES (VAT Information Exchange System) and obtaining a VAT identification number (VATIN).

Shipping Mark” translates to “Cargo Labeling”

Cargo labeling is done to identify and prevent losses. It includes the data of the seller, buyer, and consignee, volume and weight of the merchandise, and related information.

Social Compliance

The concept of social responsibility in the industry refers to the working conditions and environmental effects of production. There are different international certification models.

Test Report 

A test report or test certificate is a document that gathers the results of a systematic test conducted to analyze whether a product meets the requirements set for its approval.

VIES

The VIES (VAT Information Exchange System) is a fiscal control tool of the European Union for commercial activities between member countries. All legal entities engaging in international operations within the EU territory must register in the VIES registry and obtain the corresponding VAT identification number (VAT-ID). Additionally, registration in the ROI (Register of Intracommunity Operators) is required. The VIES is also necessary for the transit of goods through customs in EU countries when the destination country is also a member. If you have a VAT-ID, your commercial transactions with companies from other EU countries are exempt from VAT.