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Defining Common Shipping & Logistics Terminologies

Updated this week

Shipping and logistics come with their own language, and it’s easy to get lost in the jargon. This guide defines the most commonly used terms so you can quickly find what you need, whether you're new to the field or just need a refresher.

Use this glossary as your go-to reference anytime something sounds unfamiliar.

Terms and definitions

Abroad warehouse

Temporary holding facility for undelivered packages located at the order's destination country.

Baohong system

The bonded warehouse customs system used for filing and verification.

Battery Line

Pure battery. A standalone energy storage device that is not integrated into or part of any equipment, device, or machinery. It is shipped as a single item, typically used for energy storage and supply, such as lithium-ion batteries or similar rechargeable battery units.

Bonded warehouse

It is a warehouse that stores imported goods that haven’t been cleared by customs yet.

Bonded zone

A special customs-controlled area where goods can be stored, processed, or exported/imported without immediate tax or duty.

Brand authorization

Permission granted to a company (such as Portless or Globex) to ship branded goods through China Customs.

Bulky line

Standard Portless shipping method for large items.

Checkout+

A consumer-financed package protection add-on for your customers.

COGs

Cost of goods. It’s the total cost of the items you sold, including:

• What you paid to buy the product (if you’re reselling it)
• Or the cost to produce it (materials + labor)
• Plus any shipping or handling fees to get it ready for sale

Commercial invoice

A document that lists product details, value, and shipper/receiver information.

Compensation

A credit applied to your next invoice to cover the cost of goods and/or shipping for a damaged/incorrect/missing/lost order.

Covered order

An order with Portless Protect added by the end customer.

Customs account number

A unique identifier issued by China Customs to companies operating within bonded zones.

CSV file

A spreadsheet file format used to organize product data for upload.

Cutoff time

The latest time an order can be processed for next-day fulfillment. It also refers to the latest time an order can be modified before it is processed for shipping.

Damaged shipment

A package that arrived broken, torn, leaking, or otherwise in an unsellable condition.

DDP (Delivered Duty Paid)

You cover any import taxes in advance so the recipient doesn’t need to.

DDU (Delivered Duty Unpaid)

The recipient pays import taxes when the shipment arrives.

Declared value

The total value stated on your commercial invoice or customs declaration, used to determine if a shipment qualifies under the de minimis threshold.

Delivered not received

The package is marked as delivered in tracking, but the customer says they didn’t receive it.

Delivery confirmation photo

A photo provided by certain carriers as part of their POD process.

De minimis

A value threshold below which goods can enter duty-free.

Direct Injection

Shipping goods directly from the origin warehouse to the destination country with minimal handoffs.

Double dipping

Requesting reimbursement from both Portless and OrderProtection.com for the same issue.

Duties

Fees collected by a country’s customs authority on imported goods.

Dynamic tracking URL

It is a smart link that adapts to the appropriate carrier’s tracking page based on the delivery stage and platform requirements.

Entry Declaration

The customs filing process required to store goods in a bonded warehouse.

Entry Type 11

A customs entry type used by Portless to declare low-value shipments.

Exit Declaration

The customs filing process when goods are shipped out of the bonded area.

First-mile TN

This is the initial tracking number generated when the order is still in the distribution stage (usually at the Portless warehouse).

Do not share this with customers, it may show the order origin (e.g., China or Vietnam).

Fulfillment Center (FC)

The facility where items are picked, packed, and shipped

HS Code

Harmonized System Code used to classify traded products and determine tariff rates.

HTS Code

Harmonized Tariff Schedule Code. A globally standardized system of names and numbers to classify traded products. Used by customs to determine tariffs and duties.

Huolala

A third-party trucking platform in China used for transporting goods locally.

Inbounding

The process of receiving and logging inventory into the warehouse system.

INCOTERM

International shipping term defining who pays duties and fees (seller or buyer).

IPPC

Stands for International Plant Protection Convention, an international standard that regulates wooden packaging materials used in global trade.

IPPC-certified wooden pallets

Wooden pallets stamped with the IPPC mark, indicating they have been treated to prevent pests and meet global trade regulations.

IPR Registry

(Intellectual Property Rights) registry. A public platform where registered trademarks and logos can be verified.

Labeling issue

When your manufacturer places an incorrect barcode on a product, causing it to be scanned incorrectly.

Labor cost

A charge applied when manual handling or special packing is required.

Last-mile TN

This is the final tracking number from the local carrier handling the delivery to your customer.

Updates appear on the last-mile carrier’s website after the package is handed off.

Lead time

The number of days between submitting product data (for new SKUs/products) and the product being ready for fulfillment.

Masked origin

When PDN hides sensitive shipment origin details (such as China) to maintain a professional and discreet experience for end customers.

Mis-pick

When the fulfillment center accidentally ships the wrong product.

Non-bonded warehouse

It is a facility where goods are stored without special customs control. Export documentation is not issued upon inbounding.

OA Orders

Open Account payments, commonly used in Alibaba Trade Assurance.

Onward

Portless’s partner platform that powers Checkout+ and manages all claims.

OOS

Out of stock

Order modification

This refers to any change to the original order, including address updates, item changes, or cancellations.

OrderProtection.com

The platform that enables your end customers to add order protection or product warranties during checkout.

Packing footage

Video recorded at the Fulfillment Center showing how an order was packed

Packing list

A breakdown of the shipment contents.

PDN

Parcel Delivery Network. It is a tracking system that bridges the gap between first-mile and last-mile logistics, providing a unified and private tracking experience.

Pipe17

A smart bridge that connects all the different software your e-commerce business uses, like your online stores (Shopify, Amazon, etc.), your warehouses/fulfillment centers (3PLs, WMS), and your back-office systems (ERP, financials).

Portless Help Center

The Portless Help Center is your go-to resource for finding answers, submitting tickets, and tracking request updates.

Premature scan

When a package is scanned as delivered before it actually reaches the customer.

Prohibited items

Products that cannot be shipped under any circumstance.

Proof of delivery

Documentation from the carrier confirming delivery (e.g., photo evidence or signature).

Product barcode

A unique product identifier used to track and confirm the correct item.

Protection Premium

The small fee paid by customers to activate Checkout+ benefits.

Reciprocal Tariffs

A response measure to match tariff rates imposed by other countries.

Reshipment

A replacement shipment sent to the customer at no cost to the merchant. This is done by creating a new order on your end. Note that we have a different guideline for reshipping orders affected by customs issues.

Restricted items

Products that may require special approval, documentation, or additional handling.

RTS

Returned to sender

Self-service merchants

Merchant who manages their Portless account independently, without a dediscated account manager.

Sensitive products

Items subject to heightened security, safety, or legal controls.

Shipping exceptions

An event that prevents a shipment from progressing as planned.

Shopify Products tab

The section in your Shopify admin where you manage your product catalog.

SKU

Stock Keeping Unit, a unique identifier for each product variant.

Strike

A work stoppage by employees that disrupts normal operations

Tariffs

Government-imposed taxes on imports, used for protection, revenue, and negotiation leverage.

Taxes

Additional charges (like VAT or GST) applied to goods upon import.

Tax Nexus

A business presence in a state that creates a requirement to collect and remit sales tax.

Ticket

A support request submitted to the Portless Customer Success Team.

Uncovered order

An order without Portless Protect.

USCI

Unified Social Credit Identifier. A unique identifier for businesses in China, similar to a business registration number.

Variant

A version of a product with specific attributes (e.g., size or color). Each variant must sync exactly with the Portless system.

Volumetric weight

A pricing method based on the size of a package rather than its actual weight.

Wholesale order

A large, bulk shipment typically made to retailers or resellers.

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