Automotive Export Glossary
54 essential terms covering trade, shipping, customs, vehicle types, and technical specifications for international vehicle buyers.
ADAS (Advanced Driver Assistance Systems)
Electronic systems that assist drivers with safety and driving functions, including lane keeping, adaptive cruise control, and automatic emergency braking.
Bill of Lading (B/L)
A legal document issued by a carrier to acknowledge receipt of cargo for shipment. It serves as a receipt, contract of carriage, and document of title.
BEV (Battery Electric Vehicle)
A vehicle powered entirely by an electric battery with no internal combustion engine. Examples include BYD Seal, NIO ET5.
Blade Battery
BYD's proprietary lithium iron phosphate (LFP) battery technology known for its safety (nail penetration test) and long cycle life.
B2B (Business-to-Business)
Commercial transactions between businesses, such as a Chinese manufacturer selling to an overseas dealer or distributor.
CIF (Cost, Insurance, and Freight)
An Incoterm where the seller pays for freight and insurance to the destination port. The most common term in international vehicle trade.
CFR (Cost and Freight)
An Incoterm where the seller pays for freight to the destination port but the buyer must arrange marine insurance separately.
Container Shipping
Vehicles are loaded into standard shipping containers (20ft or 40ft). Provides better protection than RoRo but at higher cost.
Customs Broker
A licensed professional who handles customs clearance procedures on behalf of importers, including duty calculation and document submission.
CBU (Completely Built-Up)
A fully assembled vehicle ready for sale. CBU imports typically attract higher import duties compared to CKD/SKD.
CKD (Completely Knocked Down)
A vehicle shipped as a complete set of parts for assembly at the destination. Often attracts lower import duties to encourage local manufacturing.
CIF Value
The value of goods including Cost, Insurance, and Freight at the destination port. Most countries use CIF value as the basis for calculating import duties.
Certificate of Origin (CO)
A document certifying the country where the goods were manufactured. Required for customs clearance and may qualify for preferential tariff rates.
DAP (Delivered At Place)
An Incoterm where the seller delivers goods to a named destination, ready for unloading. The buyer handles import customs clearance.
DDP (Delivered Duty Paid)
An Incoterm representing maximum seller obligation — goods are delivered customs cleared at the named destination with all duties paid.
Demurrage
Charges incurred when cargo remains at the port beyond the free storage period. Can add significant costs if clearance is delayed.
EXW (Ex Works)
An Incoterm where the seller makes goods available at their premises. The buyer bears all costs and risks from that point, including export clearance, freight, and insurance.
Excise Tax
An additional tax on specific goods, often based on engine size, vehicle price, or emission level. Applied on top of import duty.
ERA-GLONASS
Russia's mandatory emergency response system for vehicles. Automatically contacts emergency services in case of a serious accident.
EAEU
Eurasian Economic Union — a political and economic union of Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia with common customs regulations.
Euro Emission Standards
European emission standards (Euro 1 through Euro 7) that set limits on exhaust emissions. Many countries reference these standards for import requirements.
FOB (Free On Board)
An Incoterm where the seller delivers goods loaded onto the vessel at the port of shipment. Risk transfers to the buyer once the goods are on board.
Freight Forwarder
A company that arranges the shipment of goods from origin to destination, handling documentation, customs, and logistics coordination.
Form E (ACFTA)
A Certificate of Origin under the ASEAN-China Free Trade Agreement that qualifies goods for reduced or zero tariffs in ASEAN member states.
HEV (Hybrid Electric Vehicle)
A vehicle that combines an internal combustion engine with an electric motor but cannot be plugged in for charging.
Homologation
The process of certifying that a vehicle meets the regulatory standards of the destination country for safety, emissions, and other requirements.
Incoterms
International Commercial Terms published by the ICC that define the responsibilities of buyers and sellers in international trade, including who pays for shipping, insurance, and customs.
Import Duty
A tax levied by the destination country on imported goods. Rates vary significantly by country and vehicle type.
kWh (Kilowatt-hour)
The unit of measurement for EV battery capacity. A higher kWh rating generally means longer driving range.
Letter of Credit (L/C)
A bank guarantee that ensures the seller receives payment once specified conditions are met. Common for high-value vehicle transactions.
LCV (Light Commercial Vehicle)
Commercial vehicles under 3.5 tonnes GVW, including vans and pickup trucks. A growing segment in Chinese exports.
LFP (Lithium Iron Phosphate)
A type of lithium battery chemistry known for safety, long cycle life, and lower cost, but with lower energy density than NMC batteries.
Landed Cost
The total cost of a vehicle delivered to the buyer's location, including purchase price, shipping, insurance, duties, taxes, and clearing charges.
Lead Time
The time between placing an order and receiving the vehicle. For Chinese vehicle exports, this typically ranges from 4-12 weeks depending on availability.
MPV (Multi-Purpose Vehicle)
A vehicle designed for passenger comfort with flexible seating configurations. Popular in Southeast Asian markets.
MOQ (Minimum Order Quantity)
The smallest number of units a supplier is willing to sell in a single order. Often negotiable for vehicle purchases.
MSRP
Manufacturer's Suggested Retail Price — the recommended selling price set by the manufacturer. ChinaAutoGlobal shows guide prices for reference.
NEV (New Energy Vehicle)
Chinese classification for vehicles powered by non-traditional fuels, including BEV (Battery Electric), PHEV (Plug-in Hybrid), and FCEV (Fuel Cell).
NMC (Nickel Manganese Cobalt)
A lithium battery chemistry offering higher energy density than LFP, commonly used in premium EVs for longer range.
OTA (Over-the-Air) Update
Software updates delivered wirelessly to vehicles, allowing manufacturers to add features and fix issues without requiring a dealer visit.
OEM (Original Equipment Manufacturer)
The company that manufactures the vehicle. In the Chinese auto industry, major OEMs include BYD, Chery, Geely, and Great Wall Motors.
PHEV (Plug-in Hybrid Electric Vehicle)
A vehicle with both an electric motor and internal combustion engine that can be charged from an external power source.
Pre-Shipment Inspection (PSI)
A quality and quantity check performed before goods are shipped, often required by the destination country's customs authority.
Proforma Invoice
A preliminary invoice sent before shipment, detailing the goods, prices, and terms. Used for customs and payment purposes.
RoRo (Roll-on/Roll-off)
A shipping method where vehicles are driven onto and off the vessel. Generally cheaper than container shipping for individual vehicles.
SKD (Semi-Knocked Down)
A vehicle shipped in partially assembled form, requiring less assembly work than CKD but more than CBU.
SUV (Sport Utility Vehicle)
A vehicle combining elements of road-going passenger cars with off-road capability. The most popular vehicle category in Chinese exports.
SASO
Saudi Standards, Metrology and Quality Organization — the body responsible for setting and enforcing product standards in Saudi Arabia.
T/T (Telegraphic Transfer)
A direct bank-to-bank wire transfer. The most common payment method for vehicle imports, typically structured as a deposit plus balance before shipment.
Type Approval
Official certification that a vehicle model meets all technical requirements of the destination market. Required before vehicles can be sold.
VAT (Value Added Tax)
A consumption tax applied at each stage of production and distribution. Usually calculated on the CIF value plus import duty.
VIN (Vehicle Identification Number)
A unique 17-character code assigned to every vehicle, encoding manufacturer, model, year, and production sequence information.
V2L (Vehicle-to-Load)
Technology allowing an EV to supply electrical power to external devices, essentially functioning as a mobile power station.
WLTP Range
Worldwide Harmonised Light Vehicle Test Procedure — the standardized method for measuring EV range. More realistic than the older NEDC standard.
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