Costa Rican Logistics Glossary

Customs brokerage
It is the technical and documentary management of the procedures required for goods to enter or leave the country while complying with customs requirements.

Tariff
It is the tax applied to certain imported or exported goods, according to their classification and current regulations.

BL
Stands for Bill of Lading. It is the document issued by the shipping line that supports the ocean transportation of the goods.

Bonded warehouse
It is an authorized warehouse where goods can remain temporarily under customs control without paying taxes immediately.

Supply chain
It is the set of processes involved from the origin of a product to its final delivery, including transportation, warehousing, inventory, documentation, and distribution.

Distribution center
It is the space where products are received, stored, organized, and dispatched to clients, branches, or points of sale.

CIF
Stands for Cost, Insurance and Freight. It is an Incoterms® rule in which the seller assumes the cost, insurance, and freight to the agreed destination port.

CIP
Stands for Carriage and Insurance Paid To. It is an Incoterms® rule in which the seller contracts transportation and insurance to the agreed place of destination.

Tariff classification
It is the process through which the tariff code of a product is determined in order to correctly apply taxes, regulations, and customs requirements.

Coverage
It is the scope of protection offered by an insurance policy against certain risks or events.

Barcode
It is a visual identifier that allows products to be recorded, tracked, and controlled through optical reading.

Customs warehouse operator
It is the auxiliary party responsible before the customs service for the temporary custody and preservation of goods under customs control.

Customs clearance
It is the process of review, validation, and release of goods by customs.

Local distribution
It is the logistics stage in which goods leave the warehouse and are delivered to clients, branches, or final points within the country.

DUA
Stands for Single Customs Declaration. It is the official document used to declare goods before customs in Costa Rica.

FCL
Stands for Full Container Load. It refers to the full use of a container for the cargo of a single client.

FOB
Stands for Free On Board. It is an Incoterms® rule in which the seller delivers the goods on board the vessel and the risk is transferred to the buyer at that point.

Freight Forwarder
It is the company that coordinates the international transportation of goods, organizing routes, documents, and logistics processes on behalf of the client.

Incoterms®
They are international trade rules that define responsibilities, risks, and certain costs between buyer and seller in international operations.

Insurable interest
It is the legitimate economic relationship that a person or company has with the goods and that justifies their ability to insure them.

Inventory
It is the set of products or goods available for storage, sale, distribution, or use within an operation.

LCL
Stands for Less than Container Load. It refers to consolidated cargo that shares space in a container with goods from other clients.

Goods in transit
It is the cargo being transported from an origin to a destination by sea, air, or land.

Packing
It is the process of packaging or preparing an order before dispatch or delivery.

Picking
It is the process of selecting and collecting products inside the warehouse to prepare an order.

Premium
It is the amount paid for insurance coverage.

Cargo insurance
It is the coverage that protects goods against damage, losses, or incidents during transportation and logistics transit.

Claim event
It is the event or incident covered by the insurance that causes damage, loss, or impact to the goods.

TICA
Stands for Information Technology for Customs Control. It is the platform linked to Costa Rica’s customs system for consultations and customs information management.

Traceability
It is the ability to identify and follow the route, location, or movement of goods within the logistics operation.