China Sourcing Glossary
Essential trade, manufacturing, and logistics terminology for anyone sourcing products from China. Click any term for a detailed explanation with practical examples.
FOB (Free on Board)
Seller delivers goods to the port of origin. Buyer pays freight and insurance.
Read definition →CIF (Cost, Insurance, Freight)
Price includes goods, insurance, and freight to the destination port.
Read definition →DDP (Delivered Duty Paid)
Seller handles everything including import duties and delivery to your door.
Read definition →MOQ (Minimum Order Quantity)
The smallest number of units a factory will produce in one order.
Read definition →Incoterms 2020
International trade rules defining buyer and seller responsibilities.
Read definition →AQL (Acceptable Quality Level)
Statistical sampling standard for quality inspection in manufacturing.
Read definition →HS Code
Harmonized System code for classifying products for customs and tariffs.
Read definition →LCL vs FCL
Less than Container Load vs Full Container Load shipping options.
Read definition →RFQ (Request for Quotation)
Formal document requesting price quotes from manufacturers.
Read definition →NNN Agreement
Non-disclosure, Non-use, Non-circumvention contract for IP protection in China.
Read definition →Alibaba Gold Supplier
Paid membership status on Alibaba — what it means and its limitations.
Read definition →OEM vs ODM
Original Equipment Manufacturer vs Original Design Manufacturer.
Read definition →EXW (Ex Works)
Buyer is responsible for everything from the factory gate onward.
Read definition →Bill of Lading (B/L)
Shipping document that serves as a receipt, contract, and title document.
Read definition →Letter of Credit (L/C)
Bank-guaranteed payment instrument for international trade.
Read definition →PI (Proforma Invoice)
Preliminary invoice sent before production begins, outlining pricing and terms.
Read definition →Need Help with Trade Terms?
Our team handles all the complexity of international sourcing — from Incoterms to customs clearance. Just tell us what you need.
Send Inquiry