# X Global Trade Trade and Shipping Glossary > https://www.xglobal-trade.com/resources/glossary/ > Last updated: September 13, 2026 Plain-language definitions of the Incoterms, Egyptian compliance systems, shipping terms, and trade documents used when importing from China to Egypt. Each entry stands on its own. ## Incoterms ### CIF (Cost, Insurance, and Freight) CIF is an Incoterm for sea shipments where the seller pays for the goods, the main ocean freight to the named destination port, and marine insurance covering the buyer in transit. Risk still passes to the buyer once the goods are loaded on the vessel, even though the seller bought the insurance. The buyer handles import clearance, duties, and onward delivery. XGT helps importers read a CIF quote against FOB so the freight and insurance markup is visible. ### DDP (Delivered Duty Paid) DDP is the Incoterm where the seller carries the most responsibility. The seller delivers the goods to the buyer's named address, cleared for import, with every cost paid: main freight, export and import formalities, duties, and taxes. The buyer only unloads. It gives the buyer one landed price and almost no paperwork, though the seller usually prices that convenience in. XGT runs DDP shipments to Egyptian warehouses and can also quote the unbundled version so each cost line is visible. ### EXW (Ex Works) EXW is the Incoterm with the least seller responsibility. The seller only makes the goods available at its own premises, packed and ready, and the buyer takes over everything from there: loading, export clearance, all freight and insurance, import clearance, and delivery. It exposes the buyer to the most cost and risk, including foreign export rules the buyer cannot easily control. XGT often acts as the buyer's agent in China to handle the export side an EXW deal leaves open. ### FCA (Free Carrier) FCA is an Incoterm where the seller delivers the goods, cleared for export, to a carrier or place named by the buyer, often a forwarder's warehouse or a container terminal. Risk passes to the buyer at that handover point. FCA works for any transport mode, including containers and air freight, and many trade bodies now recommend it instead of FOB for containerised cargo. XGT is frequently the named party that receives FCA cargo inside China. ### FOB (Free on Board) FOB is a sea freight Incoterm where the seller delivers the goods on board the vessel at the named origin port and clears them for export. From that point the buyer carries the cost and risk: main freight, insurance, import clearance, duties, and final delivery. FOB is the most common term for first orders from China because it splits the job cleanly at the origin port. XGT takes over an FOB shipment at the Chinese port and runs it through to the Egyptian warehouse. ## Egyptian Import Compliance ### ACI (Advance Cargo Information) ACI is Egypt's mandatory pre-arrival cargo declaration. Before goods leave the origin country, the shipment, its parties, and its documents are registered electronically, and the system issues an ACID number that must appear on the invoice, packing list, and transport document. Cargo without a valid ACID number is rejected or heavily delayed at the port. Which party files the ACI depends on how the shipment is arranged; XGT files it on shipments where it holds that role. ### CargoX CargoX is the blockchain-based document platform Egypt adopted to carry the ACI pre-arrival filing. Traders, or their agents, use it to submit shipping documents and obtain the ACID number that Egyptian customs requires before cargo arrives. It replaced a paper and email process with a single electronic channel feeding Nafeza, Egypt's customs window. XGT operates CargoX accounts for the shipments it files and coordinates with the client's customs broker on the rest. ### GOEIC (General Organization for Export and Import Control) GOEIC is the Egyptian authority that regulates and inspects imports and exports. It runs the certificate of conformity system for regulated products such as electronics, toys, and machinery, and it maintains the register of approved foreign factories that some product categories require before their goods can enter Egypt. Shipping without the right GOEIC paperwork is a leading cause of cargo held at Egyptian ports. XGT arranges conformity testing with approved labs and checks factory registration before an order ships. ### Nafeza Nafeza is Egypt's national single window for foreign trade, the government system that brings customs, permits, and pre-arrival filings into one online portal. Importers, brokers, and agencies use it to lodge declarations, upload documents, pay fees, and track a shipment's clearance status. The ACI filing made through CargoX feeds into Nafeza, which is where Egyptian customs assesses the cargo. XGT works to Nafeza requirements so a shipment's documents line up with what the system expects. ## Shipping and Trade Concepts ### AQL (Acceptable Quality Limit) AQL is the standard used in pre-shipment inspection to decide whether a production batch passes or fails. An inspector checks a random sample of the finished goods and counts defects, sorting them into minor, major, and critical. Each category has a maximum number of defects allowed for the batch size; go over it and the batch fails. It lets a buyer judge a whole order without checking every unit. XGT inspects to an agreed AQL before the balance of payment is released. ### CBM (cubic meter) CBM, cubic meter, is the volume measure that drives sea freight pricing for cargo that does not fill a container. You calculate it by multiplying a carton's length, width, and height in meters, then multiplying by the number of cartons. LCL ocean freight is billed on CBM or on weight, whichever is greater. Knowing the CBM early tells an importer whether LCL or a full container is cheaper. XGT's Client Hub has a free calculator for this. ### FCL vs LCL FCL, full container load, means one shipper's cargo fills an entire container, usually a 20-foot or 40-foot box, and pays a flat rate for it. LCL, less than container load, means several shippers share one container and each pays for the space their cargo occupies, measured in CBM. FCL suits regular full-container volumes; LCL suits smaller or first orders. XGT books both and consolidates LCL cargo from several Chinese suppliers into one shipment where it helps. ### Freight forwarder A freight forwarder arranges the movement of goods on a shipper's behalf without owning the ships or planes. It books cargo space, prepares transport documents, coordinates customs clearance, and manages the handoffs between trucking, port, ocean or air carrier, and final delivery. It is the single point of contact that saves an importer from dealing with each provider separately. XGT operates as the forwarder on its lanes, with its own teams at the China and Egypt ends. ### HS code (Harmonized System code) An HS code is the international product classification number used by customs authorities worldwide. The first six digits are standardised globally; countries add further digits for their own tariff detail. The code a product is assigned decides its duty rate, its tax treatment, and whether it faces inspection or licensing. A wrong HS code causes reassessment, fines, or delay at the border. XGT confirms the classification with the client before goods ship so the landed cost stays predictable. ### Landed cost Landed cost is the total an imported product actually costs once it reaches the buyer's door, not just the supplier's price. It adds origin charges, main freight, insurance, customs duty, import taxes, clearance and port fees, and inland delivery. Working it out before ordering is what tells an importer whether a deal is genuinely profitable. XGT builds a landed-cost breakdown for clients so a booth price at a fair is never mistaken for the real cost. ### Sourcing agent A sourcing agent finds and manages suppliers in a manufacturing country on a buyer's behalf. The work covers identifying candidate factories, verifying they are real and capable, negotiating price and terms, arranging samples, and overseeing production and inspection. A good agent is paid a fee or commission and stays on the buyer's side of the table. XGT provides sourcing as one part of a chain that continues into inspection, freight, and Egyptian customs clearance. ## Trade Documents ### Bill of Lading (B/L) A bill of lading is the core sea freight document, issued by the carrier to the shipper. It does three jobs at once: a receipt that the goods were loaded, evidence of the transport contract, and a document of title, meaning whoever holds the original can claim the cargo. Because it controls release of the goods, an error or delay with the B/L stalls clearance. XGT checks the B/L against the invoice, packing list, and ACI filing before the vessel sails. ### Certificate of Origin (CO) A certificate of origin is a signed declaration stating the country where goods were produced. Customs uses it to apply the correct duty rate, enforce trade agreements or preferences, and administer quotas or restrictions. It is usually issued or stamped by a chamber of commerce in the exporting country, and some destinations require it to be legalised. For Egyptian imports the CO is part of the standard document set. XGT arranges it with the supplier and confirms any legalisation Egypt asks for. ### Proforma Invoice (PI) A proforma invoice is a preliminary invoice a supplier issues before an order is confirmed. It sets out the goods, quantities, unit prices, total, Incoterm, payment terms, and bank details, so the buyer can approve the deal, arrange payment, or apply for financing. It is not a demand for payment and is not used for customs valuation; the commercial invoice issued at shipment does that. XGT reviews the PI with a client so terms and specs are locked before any money moves.