Trade Glossary

HS code (Harmonized System)

A 6-digit product classification code maintained by the World Customs Organization. The first 2 digits identify the chapter (e.g. 27 = mineral fuels), 4 digits give the heading (2709 = crude petroleum oil), 6 digits the subheading. Countries extend it with 2–4 more digits for tariff lines. Over 200 countries use the HS as the basis for their customs tariffs, so it's the lingua franca of traded goods.

HS2 / HS4 / HS6

The three levels of HS classification we expose: HS2 (97 chapters, coarsest), HS4 (~1,200 headings), HS6 (~5,400 subheadings, finest global level). TradeFlowLookup primarily provides HS2 with an HS4 sample for major bilateral pairs.

FOB (Free On Board)

The value of exported goods at the border of the exporting country, excluding international shipping and insurance. Exporter's reported value is typically FOB.

CIF (Cost, Insurance, Freight)

The value of imported goods at the border of the importing country, including shipping and insurance. Importer's reported value is typically CIF. The CIF–FOB gap is why bilateral data never perfectly reconciles.

Re-exports

Goods that enter a country, clear customs, and are subsequently re-exported without substantial processing. Singapore, Hong Kong, and the Netherlands have high re-export shares. Re-exports can cause double-counting when looking at gross global trade figures.

Trade balance

Exports minus imports. A positive balance is a trade surplus (the country sells more than it buys); negative is a trade deficit. Bilateral balance is exports to country X minus imports from country X.

Reporter vs partner

In Comtrade terminology, the reporter is the country submitting the customs record; the partner is the country on the other side of the transaction. For every trade flow there are (in principle) two mirror records — e.g. US imports from China (US is reporter) and China exports to US (China is reporter).

Customs union

A group of countries that apply a common external tariff to imports from outside the union and zero internal tariffs among themselves. The EU Single Market is the most prominent example; Mercosur, EAEU, SACU are others.

WTO (World Trade Organization)

The intergovernmental body that administers multilateral trade agreements and adjudicates disputes. 164 member economies as of 2024. The WTO doesn't publish bilateral trade data itself — it monitors rules compliance.

MFN (Most Favored Nation)

A WTO principle: a country must extend any trade advantage granted to one WTO member to all other WTO members. “MFN tariff” is the applied rate that any WTO member pays absent a preferential trade agreement.

Free trade agreement (FTA)

A bilateral or regional deal that removes tariffs on most goods between signatories, without establishing a common external tariff (unlike a customs union). USMCA, CPTPP, and AfCFTA are examples.

Tariff vs duty

Used interchangeably — the tax paid on imported goods. An ad valorem tariff is a percentage of value; a specific tariff is a fixed amount per unit (e.g. $X per metric ton).

USD thousands

All values on TradeFlowLookup are stored in USD thousands (the Comtrade publishing unit) and displayed as millions, billions, or trillions for readability. So "USD 1,234 thousand" = $1.234 million.