Glossary

Import terms, explained

MOQ, OEM, AQL, FOB, DDP, HS code: the import terms every retailer buying from China should know, explained simply.

MOQ

Minimum order quantity: the smallest order a factory accepts for a product.

OEM / private label

A product made by a factory and sold under your own brand.

AQL

Acceptable quality limit: the sampling standard (ISO 2859-1) used to inspect a batch before shipping.

FOB

Free on board: the price covers goods loaded on the ship in China. Freight and import are extra.

DDP

Delivered duty paid: the price covers everything up to your door, including customs duties and taxes.

HS code

The international customs code of a product. It sets the import duty rate.