Every import deal comes with a wall of abbreviations — FOB, CIF, L/C, HS Code, MOQ. Misreading just one of them can change who pays for shipping, when ownership transfers, or whether your goods clear customs. This glossary explains the 18 terms you'll meet most often when sourcing from Turkey, grouped by where they appear in a deal.
Incoterms — who pays, and where risk transfers
Incoterms define the exact point where responsibility and cost pass from seller to buyer. They are the single most important thing to agree on before any price discussion.
INCOTERMS
International Commercial TermsA standardized set of rules published by the International Chamber of Commerce that defines the responsibilities of buyer and seller in a shipment — who arranges transport, who pays freight and insurance, and where risk transfers. Always state the exact Incoterm in your contract.
EXW
Ex WorksThe seller makes the goods available at their own premises (factory or warehouse). From that point on, the buyer pays for and arranges everything — loading, transport, export clearance, and insurance. EXW gives the buyer maximum control but also maximum responsibility.
FOB
Free On BoardThe seller delivers the goods, cleared for export, loaded onto the vessel at the named port. Risk passes to the buyer once the goods are on board. FOB is one of the most common terms for sea freight and gives a clean split of costs at the port of origin.
CIF
Cost, Insurance and FreightThe seller covers the cost of the goods, the main sea freight to the destination port, and minimum insurance. Risk still passes to the buyer once goods are loaded, but the seller arranges and pays for shipping and basic insurance. Convenient for buyers who prefer the seller to handle logistics.
Shipping & customs documents
These are the documents and codes that move with your goods and determine how they clear customs.
B/L
Bill of LadingThe core shipping document issued by the carrier. It serves three roles at once: a receipt for the goods, evidence of the transport contract, and a document of title — meaning whoever holds the original B/L can claim the goods. Critical in payment methods like letters of credit.
HS Code
Harmonized System CodeAn internationally standardized number that classifies every traded product. Customs authorities use it to determine duties, taxes, and any restrictions. Using the correct HS Code is essential — a wrong code can cause delays, fines, or unexpected tariffs.
COO
Country of OriginThe country where the goods were produced or manufactured. It appears on the Certificate of Origin and affects tariffs, trade-agreement eligibility, and import rules. For Turkey–Iran trade, origin documentation directly impacts customs treatment.
ETA
Estimated Time of ArrivalThe carrier's projected date for when a shipment will reach its destination port or location. Useful for planning customs clearance and onward delivery, but it is an estimate — weather, port congestion, and customs can shift it.
Payment terms
How and when money moves is where most disputes happen. Know these before you commit.
LC
Letter of CreditA bank guarantee that the seller will be paid once they present the agreed documents (such as the B/L and invoice). It protects both sides: the seller is assured of payment, and the buyer pays only when shipping is proven. Common in larger or first-time deals.
TT
Telegraphic TransferAn international bank-to-bank wire transfer — the most common way to pay suppliers directly. Fast and simple, but offers less protection than a letter of credit, so payment terms (deposit vs. balance) matter a great deal.
PO
Purchase OrderThe buyer's formal document confirming an order: products, quantities, agreed prices, and terms. Once accepted by the seller, it becomes a binding commitment and the reference point for the whole transaction.
RFQ
Request for QuotationThe buyer's request asking a supplier to quote a price for specified goods, quantities, and conditions. It's the starting point of most sourcing deals — and submitting a clear RFQ is the fastest way to get accurate pricing.
Sourcing & manufacturing terms
These describe how products are made and the conditions of supply.
MOQ
Minimum Order QuantityThe smallest quantity a supplier is willing to produce or sell in one order. MOQ drives unit pricing and is often negotiable — knowing it early avoids wasted discussions with suppliers you can't realistically order from.
QC
Quality ControlThe process of inspecting goods against agreed specifications — before, during, or after production. A pre-shipment QC inspection is one of the best protections an importer has against receiving defective or off-spec goods.
OEM
Original Equipment ManufacturerA manufacturer that produces goods to another company's design and specifications, often sold under the buyer's brand. If you want products made to your exact specs and branding, you're looking for an OEM arrangement.
ODM
Original Design ManufacturerA manufacturer that designs and produces a product which the buyer then sells under their own brand. Unlike OEM, the design comes from the manufacturer — faster and cheaper to launch, but with less control over the design.
Why getting these right matters
These terms aren't just jargon — each one allocates cost, risk, or responsibility. Agreeing on the wrong Incoterm, missing a document, or misreading a payment term can quietly turn a profitable deal into a loss. The safest path is to have someone who handles these terms every day review your proforma and contract before you pay.
As your sourcing office in Istanbul, Yedi Mavi negotiates these terms with Turkish suppliers on your behalf — so you import on clear, fair conditions with no surprises at the port.
Sourcing from Turkey?
Send us your request and we'll handle the suppliers, terms, and logistics for you.
Submit an RFQ