Shipping & customs glossary

35 terms you'll meet when shipping in, to or from Canada.

Air waybill (AWB): The shipping document and tracking number for an air shipment. DHL Express tracking numbers are 10-digit air waybill numbers. DHL Express tracking →
Bill of lading: A contract between shipper and carrier for freight, listing goods, origin and destination. Used mostly for pallets and ocean freight rather than parcels.
Brokerage fee: A fee charged by a customs broker (often the carrier itself) for clearing your shipment through customs. Separate from duties and taxes. Canadian customs guide →
CBSA: Canada Border Services Agency — the federal agency that inspects imports, assesses duties and taxes, and releases goods into Canada. Canadian customs guide →
Commercial invoice: A document describing goods in an international shipment: description, value, quantity, origin and HS code. Customs uses it to assess duties. Free commercial invoice generator →
Country of origin: Where the goods were made, not where they were shipped from. It decides which duty rate and trade agreement apply.
CUSMA: The Canada–United States–Mexico Agreement (USMCA in the US). Qualifying goods made in member countries can enter duty-free. Shipping Canada to the USA →
DAP (Delivered at Place): An Incoterm where the seller pays shipping to the destination but the buyer pays import duties and taxes.
DDP (Delivered Duty Paid): An Incoterm where the seller pays shipping plus all import duties, taxes and brokerage. The recipient pays nothing on delivery.
DDU (Delivered Duty Unpaid): An older term meaning the recipient pays duties and taxes on arrival. Officially replaced by DAP, but still widely used.
De minimis: The value below which imports enter without duty or tax. Thresholds differ by country and change; check the destination's customs agency.
Declared value: The value you state for goods on customs paperwork. It must reflect the real transaction value.
Delivery exception: A tracking status meaning something interrupted delivery: wrong address, closed business, weather, or damage. Status & alerts →
Dim factor (divisor): The number a carrier divides length × width × height by to get dimensional weight. It varies by carrier and service. Dimensional weight calculator →
Dimensional weight: A billing weight based on a parcel's size. Carriers charge the higher of actual and dimensional weight. Dimensional weight calculator →
Duties: Taxes charged on imported goods, set by the goods' tariff classification and origin. Duties & taxes estimator →
Electronic information submitted: A tracking status meaning a label was created but the carrier hasn't physically received the parcel yet. What it means →
FOB (Free on Board): An Incoterm for sea freight: the seller's responsibility ends once goods are loaded on the vessel.
Forward sortation area (FSA): The first three characters of a Canadian postal code. They identify the province or region and whether the area is rural. Postal code validator →
Fuel surcharge: A percentage carriers add to the base rate to cover fuel costs. It changes often, usually weekly.
GST / HST: Canada's federal Goods and Services Tax, or the Harmonized Sales Tax in provinces that combine it with provincial tax. Charged on most imports.
HS code: Harmonized System code — an internationally standard number that classifies goods for customs. The first 6 digits are shared worldwide. HS chapter finder →
Incoterms: Standard trade terms (like DDP, DAP, FOB) that set who pays for shipping, insurance and duties, and where responsibility transfers.
Last-mile delivery: The final leg from a local depot to the recipient's door, often handled by a different company than the long-haul carrier. Intelcom tracking →
Liability coverage: The amount a carrier will pay if a parcel is lost or damaged. Base coverage is often low; extra coverage costs more. Claims assistant →
Notice card: A card left when delivery failed, telling you where to pick up the parcel or when the carrier will try again.
Out for delivery: The parcel is on a delivery vehicle and expected to arrive today. What it means →
Proof of delivery (POD): The carrier's record that the parcel was delivered: a signature, photo or GPS scan.
Residential surcharge: An extra fee couriers charge to deliver to a home rather than a business address.
Return to sender (RTS): The parcel is going back to the shipper, usually after failed delivery attempts or an unclaimed pickup.
Section 321: A US rule letting low-value shipments to one person enter the US without duty. Its scope has changed; check current US CBP guidance. Shipping Canada to the USA →
Signature required: A delivery option where the carrier must get a signature, so the parcel can't be left at the door.
Tracking number: The unique code a carrier assigns a parcel. Its format usually tells you which carrier it belongs to. Tracking number identifier →
Transit time: How many business days a parcel takes from pickup to delivery. Weekends and holidays usually don't count. Transit time estimator →
UPU S10: The international postal tracking format: 2 letters, 9 digits, 2-letter country code (for example RA123456785CA). Canada Post tracking →