Freight & Import Glossary: China–Latin America Shipping Terms

This is a plain-language glossary of the freight, shipping and customs terms you run into when importing from China to Latin America. Each entry is a short, self-contained definition, and where a term has its own detailed guide we link it so you can go deeper. Use it as a reference while you read a quote, a bill of lading or a customs document — and treat any rates or thresholds mentioned as planning information you should confirm for your shipment.

Key takeaways

• Incoterms decide who pays and who carries the risk at each stage — the most important three letters on your contract. See Incoterms 2020 explained.
• Ocean freight is priced by container (FCL) or volume (LCL); air freight is priced by chargeable weight. Knowing which unit applies tells you how to compare quotes.
• Surcharges and accessorial charges — GRI, PSS, BAF, THC, demurrage and detention — are where a “cheap” rate quietly grows.
• Customs terms differ by country. Mexico has the pedimento, Padrón de Importadores, NOM and IMMEX; Colombia clears through the DIAN; Ecuador through SENAE.
• This glossary is a hub — most terms link to a full article when you need the detail.

Incoterms and trade terms

Incoterms — A set of standard three-letter trade terms published by the International Chamber of Commerce that define, between buyer and seller, who arranges and pays for transport, who handles export and import formalities, and where risk transfers. They do not cover payment, ownership or disputes. See Incoterms 2020 explained.

EXW (Ex Works) — The seller makes the goods available at their own premises and the buyer takes over from there, arranging and paying for everything including export. Maximum responsibility sits with the buyer.

FOB (Free On Board) — The seller delivers the goods loaded onto the vessel at a named origin port and risk passes there; the buyer carries freight, insurance, import duty and delivery. The most common way Chinese suppliers quote, and a sea-only term that should not normally be used for containerised or air cargo.

CIF (Cost, Insurance and Freight) — A sea-only term where the seller pays the cost, marine insurance and freight to the named destination port, but risk passes to the buyer once the goods are on board at origin. Duty, clearance and inland delivery remain the buyer’s.

DAP (Delivered at Place) — The seller delivers the goods ready for unloading at the named destination, carrying transport and risk to that point, while the buyer handles import customs clearance and duties. See how it compares in DDP vs DAP vs FOB.

DDP (Delivered Duty Paid) — The Incoterm under which the seller bears the agreed delivery, import-clearance, duty and tax obligations. Destination entry still requires a named eligible importer and a lawful clearance route. In Mexico, article 40 allows direct promotion by the importer or exporter or use of a customs agent or agency; a legal entity clearing directly must use a SAT-accredited legal representative. For DDP shipments we coordinate, the importer, applicable clearance party, legal relationship, scope and feasibility are confirmed per shipment on WhatsApp. Doble despacho is a commercial service label sometimes used on the China–Mexico lane, not another name for the DDP Incoterm. See DDP shipping from China to Mexico.

Importer of record — The legally eligible party responsible for an import: declaring it to customs, paying duty and taxes, and meeting compliance rules. DDP allocates import-clearance and tax obligations to the seller, but does not itself make a foreign seller eligible to be the local importer; the named party and lawful structure must be confirmed under destination law.

Ocean and air freight

FCL (Full Container Load) — An ocean shipment that books a whole container at a flat rate regardless of how full it is, which wins once you have enough cargo to fill most of a box. See FCL vs LCL ocean freight.

LCL (Less than Container Load) — An ocean shipment that shares a container with other cargo and is priced per cubic metre with a minimum charge, suiting smaller loads that do not justify a full container. See FCL vs LCL ocean freight.

CBM (Cubic Metre) — The standard unit of cargo volume (length × width × height in metres) used to price LCL ocean freight and to decide when FCL becomes cheaper.

Chargeable weight — The weight an air shipment is billed on: the greater of its actual gross weight and its volumetric (dimensional) weight, so bulky-but-light cargo pays for the space it occupies. See chargeable weight in air freight.

Volumetric (dimensional) weight — A calculated weight derived from a shipment’s dimensions using a standard divisor, used to make sure light, bulky cargo is charged for the volume it takes up on the aircraft. See chargeable weight in air freight.

TEU (Twenty-foot Equivalent Unit) — The standard measure of container capacity, equal to one 20-foot container; a 40-foot container counts as two TEU. It is how ships, ports and volumes are sized.

Container types and sizes — The standard boxes ocean cargo travels in — 20ft, 40ft and 40ft high-cube (40HQ), plus specialised units like reefer and open-top — each with its own internal capacity and use case. See shipping container types and sizes.

Transit time — The time a shipment takes to travel, which must be measured the same way to be meaningful: port-to-port (the sailing only) is always shorter than door-to-door (pickup to final delivery). Quote customers on door-to-door.

Costs and surcharges

THC (Terminal Handling Charge) — A charge for handling a container at a port terminal — loading, unloading or moving it within the terminal. It may be itemised separately at origin or destination or already included in a carrier or freight quote; confirm the quoted scope, contract and Incoterm before adding it again. See ocean freight charges and surcharges.

GRI (General Rate Increase) — A carrier-imposed increase to ocean freight rates on a lane, typically applied when demand rises ahead of peak shopping and holiday windows. See peak season shipping and the GRI.

PSS (Peak Season Surcharge) — A temporary surcharge carriers add during high-demand periods when space tightens, on top of the base rate. See peak season shipping and the GRI.

BAF (Bunker Adjustment Factor) — A fuel surcharge that tracks the price of marine fuel and moves your all-in ocean rate up or down as bunker costs change. See ocean freight charges and surcharges.

Demurrage — A charge that accrues per container per day when your full container sits at the port or terminal beyond the allowed free time, waiting to be picked up. See demurrage and detention.

Detention — A charge that accrues per container per day when you keep the container outside the terminal — at your warehouse for unloading — beyond the free time before returning the empty. See demurrage and detention.

Free time — The number of days a carrier allows, on each side, to collect a full container and to return the empty before demurrage or detention starts to accrue. See demurrage and detention.

Drayage — The short-haul trucking of a container between the port and a nearby point such as a warehouse, rail ramp or deconsolidation facility — a distinct, often-overlooked cost line.

Landed cost — The all-in cost of getting a product from the supplier to your own door ready to sell: goods (FOB), freight, insurance, duty, VAT/IVA, broker and clearance fees, handling, inland delivery and the cost of capital. See the true landed cost of importing from China.

Cargo insurance — Cover that protects the value of your goods against loss or damage in transit, separate from any limited carrier liability, and usually a small fraction of the cargo and freight value. See cargo insurance explained.

Documents and parties

Bill of lading (B/L) — The core ocean shipping document, issued by the carrier, that acts as a receipt for the goods, evidence of the contract of carriage, and (in negotiable form) a document of title to the cargo. See the bill of lading explained.

MBL (Master Bill of Lading) — The bill of lading issued by the ocean carrier to the forwarder or NVOCC, covering the cargo at the carrier-to-forwarder level. See the bill of lading explained.

HBL (House Bill of Lading) — The bill of lading issued by a forwarder or NVOCC to the actual shipper, sitting underneath the master bill in a consolidated shipment. See the bill of lading explained.

NVOCC (Non-Vessel-Operating Common Carrier) — A party that issues its own bills of lading and acts as a carrier to shippers but does not operate the ships, instead buying space from the actual ocean carriers — a common role for forwarders.

Freight forwarder — A company that arranges the movement of goods on a shipper’s behalf — booking freight, handling documents, coordinating customs and managing the door-to-door journey — without necessarily owning the ships or planes. See what a freight forwarder does.

Customs broker / agent — A licensed specialist who prepares and files import declarations with customs, calculates duty and taxes, and clears goods on the importer’s behalf. This is one possible declaration route, not the forwarder itself. In Mexico, article 40 permits clearance through a customs agent or agency, or directly by the importer or exporter; a legal entity clearing directly acts through a SAT-accredited legal representative.

Commercial invoice — The seller’s billing document for an international sale, stating the goods, quantities, value and parties, and used by customs to assess duty and taxes. For Mexico, RGCE 2026 rule 1.9.16 starts the transmission in Spanish; an underlying document in English or French allows the same language. Rule 3.1.8 requires Spanish translation of the listed detailed commercial-description data only when they are in a language other than Spanish, English or French, and applies that treatment to the specified transport and supporting documents; it does not require the entire invoice to be translated.

Packing list — A document detailing how a shipment is packed — cartons, weights, dimensions and contents — used for handling, customs and verification alongside the commercial invoice.

Customs and compliance (Mexico, Colombia and Latin America)

HS code (fracción arancelaria) — The Harmonized System classification number assigned to every product, which determines the duty rate, the rules that apply and how the goods clear customs; in Mexico it is called the fracción arancelaria. See HS codes and tariffs.

Import duty (arancel) — The tariff charged on the customs value of imported goods, set by the tariff classification, origin and any applicable preference. Mexico’s decree effective January 1, 2026 changes the rates only for the classifications it lists; verify the exact code and origin rather than applying a headline rate to a whole product category. See Mexico’s 2026 tariffs on Chinese imports.

IVA (VAT) — The value-added tax charged on imports. Mexico’s general rate is 16%, with the import base defined by Article 27 of its IVA law; Colombia’s Article 468 general rate is 19%. Exclusions, special rates, exemptions and the exact base depend on the goods and regime, so confirm them before pricing.

Customs value — The value on which duty and IVA are calculated, broadly the price paid for the goods plus, depending on the valuation basis, freight and insurance to the border. An under-declared value is a liability, not a saving.

Pedimento — Mexico’s official customs declaration used for ordinary formal imports. Under article 40, the importer or exporter may promote clearance directly or through a customs agent or agency; a legal entity clearing directly uses a SAT-accredited legal representative. Confirm the applicable declaration route and any current exception for the shipment. See importing from China to Mexico: customs and the pedimento.

Padrón de Importadores — Mexico’s official register of importers, maintained by SAT. Registration is the general rule for commercial imports, while SAT also publishes limited procedures such as a one-time authorization for qualifying adult individuals (personas físicas). The exact classification determines whether a sector-specific register applies. See importing from China to Mexico: customs and the pedimento.

NOM (Norma Oficial Mexicana) — Mexico’s mandatory product standards, which for many goods require Spanish-language labelling and, in some cases, certification and testing before customs will release them — a compliance step separate from customs registration. See NOM certification for importing to Mexico.

IMMEX — A Mexican government program under which an authorised Mexico-resident legal entity may temporarily import qualifying inputs or machinery for an approved industrial process or export service and may defer specified import charges subject to the programme, classification, controls and subsequent export. It is not an automatic waiver or a route for ordinary domestic resale. See the IMMEX program explained.

DIAN (Dirección de Impuestos y Aduanas Nacionales) — Colombia’s tax and customs authority. Colombia’s Article 468 general IVA rate is 19%, but the exact customs declaration, duty, tax exclusions or special rates and importer eligibility must be checked for the goods and regime. See shipping from China to Colombia and DIAN customs.

SENAE (Servicio Nacional de Aduana del Ecuador) — Ecuador’s national customs authority. Its official import guidance covers registration in ECUAPASS, the DAI and clearance by the importer or an accredited customs agent, subject to the operation and current rules. See shipping from China to Ecuador and Guayaquil.

Parcel / courier tax (Mexico) — Mexico’s simplified courier rules generally apply a 33.5% global rate to covered shipments from non-treaty origins. A 19% treatment is limited to shipments satisfying every condition in rule 3.7.35 III(c). This is separate from the calculation for a formal import.

Frequently asked questions

What is the difference between FOB and DDP? FOB places the main carriage, import clearance and destination costs with the buyer after delivery on board. Under DDP, the seller bears the named delivery, import-clearance and tax obligations, but the destination declaration still needs an eligible importer and a lawful structure.

What is the difference between demurrage and detention? Demurrage is charged when your full container sits inside the port beyond the free time; detention is charged when you hold the container outside the port — at your warehouse — beyond the free time before returning the empty.

What is a pedimento and do I always need one? A pedimento is Mexico’s official customs declaration used for ordinary formal imports. Article 40 permits direct promotion by the importer or exporter or use of a customs agent or agency; a legal entity clearing directly uses a SAT-accredited legal representative. Confirm the applicable route and any current exception for the shipment rather than assuming one filing party fits every entry.

This glossary is part of our wider guide to importing from China: customs, duties and compliance. If you meet a term on a quote or document that you want explained for your specific shipment — or you would rather hand the whole job to a forwarder who does this daily — message us on WhatsApp for a quote.