Sourcing Glossary

Sourcing GlossaryEssential terminology for China sourcing and international trade. Master these terms to communicate effectively with suppliers.ACEFHILMOQRTAAQL (Acceptable Quality Level)A statistical measurement of the maximum acceptable number of defective units in a sample.CCIF (Cost, Insurance, Freight)A shipping term where the seller pays for cost, insurance, and freight to the destination port.CBM (Cubic Meter)A unit of measurement for shipping volume, calculated as length x width x height in meters.EEXW (Ex Works)A shipping term where the buyer is responsible for all costs from the seller's location.FFOB (Free On Board)A shipping term indicating the seller is responsible for goods until they are loaded onto the shipping vessel.HHS Code (Harmonized System Code)An international standardized system of names and numbers to classify traded products.IIncotermsInternational commercial terms that define the responsibilities of buyers and sellers in international trade.LL/C (Letter of Credit)A bank guarantee that ensures payment to the seller once shipping documents are provided.MMOQ (Minimum Order Quantity)The smallest number of units a supplier will sell in a single order.OOEM (Original Equipment Manufacturer)A company that manufactures products to be sold under another company's brand.ODM (Original Design Manufacturer)A company that designs and manufactures products that are then branded by another company.QQC (Quality Control)The process of ensuring products meet specified quality standards before shipment.RRFI (Request for Information)A preliminary inquiry sent to suppliers to gather general information about their capabilities.RFQ (Request for Quotation)A formal request sent to suppliers asking for pricing on specific products or services.TT/T (Telegraphic Transfer)A direct bank-to-bank wire transfer commonly used in international trade.Learn More About SourcingSourcing GuidesFAQBlogSourcing Glossary - China Trade Terms & Definitions | China Sourcing AI