Parcel Shipping Glossary — CN22, De Minimis, HS Code and More

Shipping and customs use a lot of specific terminology. This glossary covers the most important terms you will encounter when sending or receiving parcels internationally — alphabetically ordered for quick reference.

A

AWB — Air Waybill

The shipping document for air freight shipments. The AWB (or HAWB — House Air Waybill for consolidated shipments) serves as the contract of carriage, customs declaration reference, and tracking identifier. Express carriers (DHL, UPS, FedEx) generate this automatically at booking. You will see AWB numbers in tracking systems for international air shipments.

C

CN22

A small green customs declaration form attached to parcels sent by mail or economy post to non-EU countries. Required for all non-EU/non-UK postal shipments. Includes: sender and recipient details, contents description, quantity, weight, and declared value. Used for parcels up to approximately 2 kg or €300 in value. Completed at the post office or printed from the postal service’s website.

CN23

The larger, more detailed customs declaration form used for parcels above approximately 2 kg or €300 value sent via postal services to non-EU destinations. Requires HS codes, country of origin for each item, and must be accompanied by a proforma invoice. Attach in a transparent document wallet on the outside of the parcel — customs authorities keep a copy.

Customs value

The value declared to customs authorities for the purpose of calculating customs duty and import VAT. Customs value typically includes the cost of goods plus insurance and freight (CIF value). Deliberately understating customs value is a criminal offence and voids carrier insurance.

CMR

Convention on the Contract for the International Carriage of Goods by Road. The legal framework governing road freight in Europe and beyond. Carriers operating under CMR have defined liability limits (approximately €8.33 per kilogram of gross weight lost or damaged). Most parcel carriers incorporate CMR terms.

D

DAP — Delivered at Place

An Incoterm meaning the seller/sender is responsible for delivering goods to the named destination. The buyer/recipient is responsible for import customs clearance, import duties, and import VAT. In practical terms: the carrier delivers the parcel and then bills the recipient for customs charges before releasing it. This is the standard term for most personal international shipments.

DDP — Delivered Duty Paid

An Incoterm where the seller/sender takes full responsibility: delivery to the named destination, plus all import duties, taxes, and customs clearance. The buyer/recipient receives the parcel with nothing additional to pay. Used by e-commerce businesses for a seamless customer experience; requires a carrier account capable of handling DDP clearance.

De minimis

A value threshold below which goods are exempt from customs duty. The EU applied a €150 de minimis for customs duty until 30 June 2026. Since 1 July 2026 that exemption has been abolished: online purchases from non-EU sellers in consignments up to €150 attract a temporary flat duty of €3 per item until 1 July 2028, where goods sharing the same tariff classification count as one item. The €150 refers to the value of the goods, excluding transport and insurance shown separately on the invoice. See the end of the EU’s €150 duty exemption. VAT has applied from €1 in the EU since July 2021 (no minimum). The US de minimis of $800 (Section 321) has been suspended for all countries since 29 August 2025. UK: £135 for duty (but UK VAT applies from £1).

Dimensional weight — see Volumetric weight

E

EXW — Ex Works

An Incoterm where the buyer collects goods from the seller’s premises and is responsible for all transport, insurance, export and import clearance, and duties. Rarely used for parcel shipping; more common in B2B freight.

G

GDP — Gross Domestic Product

Not specifically a shipping term, but worth noting: some country customs pages reference GDP when explaining VAT rates.

H

HS code — Harmonised System code

A 6-digit (internationally standardised) to 10-digit (country-specific) code classifying every type of goods for customs purposes. Used to determine the applicable customs duty rate. The first 6 digits are universal (maintained by the World Customs Organization); countries add further digits for domestic tariff detail. Find the HS code for any item:

• EU: taric.ec.europa.eu
• UK: trade-tariff.service.gov.uk
• USA: hts.usitc.gov

Using an incorrect HS code triggers customs inspection and potential delays. When in doubt, ask the carrier’s customs team.

I

IATA — International Air Transport Association

The trade body for airlines. IATA sets the Dangerous Goods Regulations (DGR) — the rules governing the transport of hazardous materials by air, including lithium batteries, liquids, and flammable goods. When a carrier says a shipment must comply with IATA DGR, it must be packed and labelled according to these standards.

Incoterms

A set of internationally recognised trade terms (EXW, FCA, CPT, CIP, DAP, DPU, DDP) published by the International Chamber of Commerce. They define which party (buyer or seller) is responsible for transport, insurance, and customs at each stage of delivery. The most relevant for parcel shipping: DAP (recipient pays customs) and DDP (sender pre-pays customs).

IOSS — Import One-Stop Shop

An EU VAT scheme for e-commerce. Online shops outside the EU that are registered for IOSS collect EU VAT at checkout and remit it monthly to EU tax authorities. The recipient sees no additional VAT charge on delivery. Applies to B2C shipments up to €150. Above €150, standard customs clearance applies. Relevant to recipients: if you buy from a non-EU shop and receive the parcel with no VAT charge on delivery, it was almost certainly IOSS-registered. IOSS covers VAT only: since 1 July 2026 the flat customs duty of €3 per item applies to these consignments regardless of the VAT scheme.

L

Lithium battery classification

Lithium-ion batteries (standalone) are classified as Class 9 Dangerous Goods: UN 3480. Batteries inside devices are UN 3481. Both are subject to IATA DGR restrictions for air transport: maximum 100 Wh per battery for carry-on luggage equivalents; specific labelling and packaging required for standalone batteries in cargo. Most carriers accept devices with batteries (UN 3481) under 100 Wh but refuse standalone lithium batteries in standard parcel service.

P

Proforma invoice

A document listing each item in a shipment with its description, HS code, country of origin, quantity, and value. Required for all international shipments with a customs value above approximately €300 (CN23 threshold). It is not a commercial invoice for payment — it is a customs document. Must be accurate; misrepresentation is a customs offence.

S

Section 321 de minimis (USA)

The US counterpart of the EU de minimis. Formally Section 321 of the US Tariff Act, it allowed goods valued up to $800 to enter the USA duty-free and without formal customs entry. The exemption has been suspended for all countries since 29 August 2025, so practically every parcel into the US is now dutiable regardless of value. See our guide to shipping a parcel to the USA in 2026.

T

Transit time

The time between the carrier collecting the parcel and the recipient receiving it. Does not include the time between booking and collection (label creation). Express transit times (DHL, UPS, FedEx) are typically guaranteed. Economy transit times are estimates only. Customs clearance time is not included in most carriers’ stated transit times — allow extra days for non-EU shipments.

U

UPU — Universal Postal Union

The UN agency that coordinates international postal policy. UPU member networks (national postal services) exchange mail under a unified framework. UPU standards define tracking status formats, addressing requirements, customs form specifications (CN22, CN23), and liability rules for postal shipments. When a parcel “enters the UPU network”, it is moving between national postal services.

V

Volumetric weight (dimensional weight)

The calculated weight based on a parcel’s physical dimensions rather than its actual weight. Formula:

Volumetric weight (kg) = Length (cm) × Width (cm) × Height (cm) ÷ 5,000

Carriers charge for whichever is greater — actual weight or volumetric weight. This affects bulky but light items (cushions, packaging, hollow items). Example: a box 50×40×30 cm has a volumetric weight of 12 kg, regardless of actual weight.

VOEC — VAT on E-Commerce (Norway)

Norway’s equivalent of EU IOSS. Non-Norwegian online shops registered with the Norwegian Tax Administration collect Norwegian VAT (25%) at checkout for goods up to NOK 3,000 (≈ €250). The recipient sees no additional charge. Above NOK 3,000: standard Norwegian customs applies.

W

Waybill

The document accompanying a shipment that identifies the parcel, its origin, destination, contents, and shipping terms. For express parcels, this is typically the carrier label. For air freight, the AWB (Air Waybill). The waybill is the primary reference for tracking and claims.