Glossary of Terms

3PL (Third-Party Logistics)

A company that provides outsourced logistics services including warehousing, fulfillment, and shipping. Market Express operates as a 3PL for its vendors.

ACH (Automated Clearing House)

An electronic network for financial transactions in the US, used for direct deposits, bill payments, and bank-to-bank transfers. Often used for recurring payments and vendor payouts.

Annual Membership

A yearly fee for Market Express services. Standard rate is $30,000/year, or $24,000/year with a 2-year commitment. Membership includes first $125,000 in GMV (commission-free), 3 EURO1 pallet positions of warehouse space, US entity formation (for foreign vendors), registered agent, and all standard services. Sales above $125,000 GMV incur commission (10% standard or 15% volume tier). Members choose between two pricing tiers: Standard (10% GMV + $3/cu ft warehouse) or Volume (15% GMV + $1/cu ft warehouse). Tier selection is made annually.

Example: A 2-year commitment costs $24,000 per year (saves $6,000/year vs 1-year). With $500K GMV on Standard tier: $24,000 membership + $37,500 commission (10% of $375K above floor) + warehouse fees = total cost.

API (Application Programming Interface)

A set of protocols and tools that allows different software applications to communicate with each other. Market Express provides APIs for inventory management and order processing.

Arm's Length Transaction

A transaction between unrelated parties where both parties act in their own self-interest. Prices in arm's length transactions are used as benchmarks for transfer pricing compliance.

Bill of Lading (BOL)

A legal document issued by a carrier to acknowledge receipt of cargo for shipment. It serves as a receipt, contract, and document of title for the goods.

Business Credit Establishment

A service ($5,000) that helps new US entities build business credit history. Includes D&B (Dun & Bradstreet) profile setup, trade line establishment, and credit-building strategy. Essential for foreign vendors establishing their first US subsidiary.

Example: A new Nevada LLC with established business credit can access better payment terms with suppliers and qualify for business credit cards.

Buy American Act (BAA)

A federal law (41 U.S.C. §§ 8301-8305) requiring the US government to prefer American-made products for direct government purchases. BAA applies to goods bought for government use (not for resale). Products must be manufactured in the US with more than 55% domestic components (60% for iron/steel). BAA is separate from TAA and applies to different procurement scenarios.

Example: A federal agency purchasing office furniture must give preference to US-manufactured furniture under BAA unless a waiver applies.

C-Corp Election

A tax election (IRS Form 8832) where an LLC chooses to be taxed as a C-Corporation rather than as a disregarded entity. For foreign-owned LLCs, this makes the US LLC the taxpayer (subject to 21% federal corporate tax on profits) but enables additional services like dedicated sales teams without creating permanent establishment issues for the foreign parent. Dividends to the foreign parent are subject to withholding (often reduced by tax treaties).

Example: A Korean company's US LLC elects C-Corp status. The LLC pays 21% US tax on profits. The Korean parent receives dividends with 10-15% withholding (reduced by Korea-US treaty). But the Korean parent has no US tax liability beyond this.

CBM (Cubic Meter)

The standard unit for measuring cargo volume in international shipping. LCL shipments are typically priced per CBM or per 1,000 kg (1 metric ton), whichever yields higher revenue for the carrier. One CBM = approximately 35.3 cubic feet.

Example: An LCL shipment measuring 2m × 1m × 1.5m = 3 CBM.

CCPA (California Consumer Privacy Act)

A US privacy law that gives California residents rights over their personal data, including the right to know, delete, and opt-out of data sales.

CFS (Container Freight Station)

A facility where LCL cargo is consolidated (stuffed) into containers for export or deconsolidated (stripped) from containers for import. CFS operations include cargo inspection, documentation, and temporary storage.

Chargeback

A reversal of a credit card transaction, typically initiated when a customer disputes a charge. Chargebacks can result in fees and, if excessive, account termination.

COD (Cash on Delivery)

A payment method where the buyer pays for goods at the time of delivery rather than in advance. Less common in e-commerce but still used in some markets.

Container Consolidation

The process of combining shipments from multiple vendors or origins into a single container to achieve lower per-unit shipping costs. Market Express offers container consolidation from major Asian ports.

Country of Origin (COO)

The country where a product was manufactured, produced, or substantially transformed. COO determines applicable tariff rates, trade agreement eligibility, and compliance with procurement restrictions. Accurate COO documentation is required for all products on Market Express and is verified during vendor onboarding.

Example: A product assembled in Vietnam from Chinese components may have COO of Vietnam if substantial transformation occurred there.

Customs Broker

A licensed professional who assists importers and exporters with customs clearance, ensuring compliance with import/export laws and regulations.

Customs Value

The value used to calculate import duties. For related-party transactions (like parent-subsidiary), this is typically the transfer price. For arm's length transactions, it's the actual transaction value.

CY (Container Yard)

A designated area at a port or inland facility where containers are stored, received, and delivered. FCL shipments move CY-to-CY (container yard to container yard), while LCL shipments move CFS-to-CFS.

DDP (Delivered Duty Paid)

A shipping term where the seller is responsible for all costs and risks including import duties and taxes until goods are delivered to the buyer's location.

Demurrage

A fee charged when a container remains at the port terminal beyond the allowed free time after vessel arrival. Demurrage is charged by the shipping line and can accumulate rapidly ($150-$300+ per day). Prompt container pickup avoids demurrage charges.

Example: A container arrives Monday with 3 free days. If not picked up by Thursday, demurrage charges begin.

Detention

A fee charged when a container is kept outside the port or terminal beyond the allowed free time. Detention applies to the container equipment itself (the box) and is charged until the empty container is returned. Often confused with demurrage.

Example: A container is picked up from port but the empty is not returned for 10 days. With 4 free days, 6 days of detention fees apply.

DFARS (Defense Federal Acquisition Regulation Supplement)

Regulations supplementing FAR specifically for Department of Defense (DoD) acquisitions. DFARS includes additional requirements for cybersecurity (CMMC), specialty metals, qualified products, and restrictions on certain foreign sources. Products sold to defense contractors must comply with applicable DFARS clauses.

Example: DFARS 252.225-7012 requires contractors to report cyber incidents and flow down security requirements to subcontractors.

Drayage

Short-distance transportation of shipping containers, typically from a port to a warehouse or distribution center.

Drop Shipping

A retail method where the seller doesn't keep products in stock but instead transfers orders to a third party who ships directly to the customer. Note: Market Express does not support drop shipping - all vendors must warehouse inventory.

EIN (Employer Identification Number)

A federal tax identification number issued by the IRS. Required for US businesses to open bank accounts, file taxes, and conduct business. Also called a Tax ID or FEIN.

ETA (Estimated Time of Arrival)

The projected date and time a vessel or shipment will arrive at its destination port or facility.

ETD (Estimated Time of Departure)

The projected date and time a vessel or shipment will depart from its origin port or facility.

EURO1 Pallet (EUR Pallet)

A standardized European pallet measuring 800mm × 1200mm (31.5" × 47.2"), also known as a europallet. Market Express allocates warehouse space in EURO1 pallet positions with standard stacking height of 1.5 meters (approximately 5 feet) including goods. Each pallet position is approximately 42 cubic feet of usable space.

Example: 3 EURO1 pallet positions provide approximately 126 cubic feet of warehouse storage.

FAR (Federal Acquisition Regulation)

The primary set of rules governing how federal agencies acquire goods and services. FAR establishes uniform policies and procedures for government contracting, including requirements for competition, pricing, quality, and compliance. Vendors selling to government buyers must understand applicable FAR clauses.

Example: FAR 52.225-1 (Buy American) and FAR 52.225-5 (Trade Agreements) are commonly included clauses in government contracts.

FBA (Fulfillment by Amazon)

Amazon's fulfillment service where sellers send inventory to Amazon warehouses and Amazon handles storage, packing, and shipping. Market Express offers an alternative to FBA with additional services.

FCL (Full Container Load)

A shipping method where one shipper uses an entire container exclusively for their goods. The shipper pays for the full container regardless of whether it is completely filled. Standard container sizes are 20-foot (TEU) and 40-foot (FEU). FCL is more cost-effective per unit for larger shipments.

Example: A vendor shipping 15 pallets of auto parts books an FCL 40-foot container from Busan to Long Beach.

FEU (Forty-foot Equivalent Unit)

A standard 40-foot shipping container. FEU containers are the most common size for international shipping. One FEU equals 2 TEU.

FOB (Free On Board)

A shipping term indicating when ownership and liability for goods transfers from seller to buyer. FOB Origin means buyer assumes risk when goods leave the seller; FOB Destination means seller retains risk until delivery.

Free Time

The number of days allowed to pick up a container from port (before demurrage) or return an empty container (before detention) without incurring additional fees. Typically 3-5 days for demurrage and 4-7 days for detention.

Freight Forwarder

A company that arranges the shipment of goods on behalf of shippers. Freight forwarders coordinate with carriers, customs brokers, and other parties to move cargo from origin to destination. They do not own vessels or aircraft but act as intermediaries.

Fulfillment

The complete process of receiving, storing, picking, packing, and shipping orders to customers. Market Express handles fulfillment from our Las Vegas warehouse. This is a preparatory/auxiliary activity that does not create permanent establishment for foreign vendors.

Fulfillment Support

Customer service provided by Market Express staff to handle fulfillment-related inquiries including order status, shipping tracking, delivery issues, and returns processing. Fulfillment support follows vendor's pre-set policies and does not include product-specific questions, warranty decisions outside policy, or sales negotiations. This is similar to how Amazon handles FBA customer service.

Example: A customer calls about a late shipment. Market Express fulfillment support checks tracking, provides status, and initiates replacement if policy allows—without needing vendor approval.

GDPR (General Data Protection Regulation)

European Union privacy law that governs the collection and processing of personal data from EU residents. Applies to any company handling EU customer data.

GMV (Gross Merchandise Value)

The total value of merchandise sold through the platform before any fees, deductions, or returns. This is the sales price paid by customers, not the wholesale or cost price.

Example: If you sell 100 items at $50 each, your GMV is $5,000.

HTS Code (Harmonized Tariff Schedule)

A standardized numerical code used to classify products for customs purposes. The HTS code determines the duty rate that applies to imported goods.

Example: Electric vehicle battery packs might be classified under HTS 8507.60.00 with a specific duty rate.

Importer of Record (IOR)

The entity legally responsible for ensuring imported goods comply with all laws and regulations, and for paying applicable duties and taxes. With a US subsidiary, your LLC becomes the IOR.

Interchange Fee

The fee paid by the merchant's bank to the cardholder's bank each time a credit card transaction is processed. This is the largest component of credit card processing costs, typically 1.5-3% of the transaction.

ISO 27001

An international standard for information security management systems (ISMS). Certification demonstrates a systematic approach to managing sensitive company and customer information.

KORUS (Korea-US Free Trade Agreement)

A free trade agreement between South Korea and the United States that reduces or eliminates tariffs on many products. Products qualifying under KORUS may have 0% or reduced duty rates.

LCL (Less than Container Load)

A shipping method where multiple shippers share space in a single container. Goods are consolidated at a Container Freight Station (CFS), shipped together, then deconsolidated at destination. LCL is charged per cubic meter (CBM) or weight, whichever is greater. Market Express accepts LCL shipments with a minimum of 1 pallet.

Example: A small vendor ships 2 pallets via LCL, sharing container space with other shippers to reduce costs.

Li-Ion (Lithium-Ion)

A type of rechargeable battery used in electronics, power tools, and electric vehicles. Li-Ion products require special handling, packaging, and shipping certifications due to fire risk.

Merchant Account

A type of bank account that allows businesses to accept credit and debit card payments. Required to process card transactions and receive funds from sales.

Mixed Vendor Container

A container shared by multiple Market Express vendors shipping from the same origin. Market Express coordinates consolidation at origin ports (Shenzhen, Busan, Osaka) to achieve FCL rates for vendors who individually would only have LCL volumes.

Example: Three Korean vendors each ship 5 pallets. Market Express combines them into one FCL, and each vendor pays their proportional share.

Nevada LLC

A Limited Liability Company formed in the state of Nevada. Nevada is chosen for its favorable tax treatment (no corporate income tax, no personal income tax, no franchise tax) and strong privacy protections.

Ocean Freight

The cost of transporting goods by sea, typically quoted per container (FCL) or per CBM/weight (LCL). Ocean freight excludes port charges, customs fees, drayage, and other ancillary costs.

Pallet

A flat transport structure that supports goods for handling by forklifts or pallet jacks. Market Express accepts a minimum shipment of 1 pallet. Standard pallet sizes vary by origin: China/Korea use 1100×1100mm pallets (typically 5' / 1.5m stack height), Japan uses 1100×1100mm (4' / 1.2m height), EU uses Euro pallets 1200×800mm (4' height), and US uses GMA pallets 48"×40" (4' height).

Example: A Korean vendor ships 1 pallet of brake components, 1100×1100mm base, stacked 1.5m high.

Payment Gateway

A service that authorizes and processes credit card payments for e-commerce transactions. The gateway securely transmits transaction data between the merchant, card networks, and banks.

Example: Stripe, PayPal, and Authorize.net are common payment gateways.

PCI-DSS (Payment Card Industry Data Security Standard)

A set of security standards designed to ensure all companies that accept, process, store, or transmit credit card information maintain a secure environment. Compliance is required for any business handling credit card data.

Example: Market Express maintains PCI-DSS compliance so vendors don't need to handle credit card data directly.

Permanent Establishment (PE)

A tax concept in international treaties. If a foreign company has a PE in the US, its business profits become subject to US taxation. A PE is created by having a fixed place of business (office, factory, warehouse at your disposal) or a dependent agent who habitually concludes contracts on your behalf. Storage for delivery and preparatory/auxiliary activities are explicitly excluded from PE. Market Express structures its services to avoid creating PE for foreign vendors.

Example: Using Amazon FBA or Market Express warehouse does NOT create PE because the warehouse is the platform's facility, not yours, and storage for delivery is excluded. But having a US employee who negotiates and signs contracts for you WOULD create PE.

Pooled Credit Card Processing

Lower credit card transaction fees achieved by combining transaction volume across all vendors. Higher volume means better interchange rates from payment processors.

Pooled Shipping Rates

Discounted shipping rates negotiated based on the combined volume of all vendors. By aggregating shipments, we achieve enterprise-level discounts that individual vendors couldn't get on their own.

Example: A vendor shipping 50 packages/month benefits from rates negotiated on 10,000+ packages/month.

Registered Agent

A person or company designated to receive legal documents and official government correspondence on behalf of a business. Required for all LLCs formed in Nevada (and most other states). Market Express coordinates registered agent services through Service Partners.

Retail-Ready Goods

Products that arrive at Market Express facilities in final retail packaging, ready to ship directly to end customers. Market Express does NOT perform assembly, kitting, product labeling, modification, quality inspection, repackaging, or any value-added processing. (We do affix shipping labels as part of normal fulfillment.) All packages must have a minimum 4"×6" clear space on outer packaging for shipping labels. Products not in retail-ready packaging MUST fit into standard USPS, FedEx, or UPS shipping boxes—Market Express does not provide outer shipping cartons. All products must arrive either in retail-ready packaging OR in packaging suitable for direct carrier shipment. Goods requiring preparation will be refused or returned at Vendor's expense.

Example: A product in its final consumer packaging with all product labels applied, barcodes scannable, documentation complete, and 4"×6" clear space for shipping label is retail-ready. Loose components that need assembly are NOT retail-ready. Non-retail-ready products must be pre-packed in shippable boxes (Market Express does not supply boxes).

Section 301 Tariffs

Additional tariffs imposed by the US on products from China (and some other countries) under Section 301 of the Trade Act. These tariffs can be 7.5%, 25%, or higher, on top of normal duty rates.

Section 889

Section 889 of the John S. McCain National Defense Authorization Act (NDAA) for Fiscal Year 2019. This law prohibits federal agencies from (a) procuring telecommunications or video surveillance equipment from Huawei, ZTE, Hytera, Hikvision, Dahua, or their subsidiaries/affiliates, and (b) contracting with entities that use such equipment. Market Express screens products and vendors for Section 889 compliance.

Example: A security camera system containing Hikvision components cannot be sold to federal government buyers, even if rebranded under a different name.

Service Partner

An independent third-party professional or company that provides specialized services (such as LLC formation, tax preparation, registered agent, or customs brokerage) to Market Express members. Service Partners are independent contractors, not employees or agents of Market Express. Members contract directly with Service Partners for these services.

Example: LLC formation, EIN registration, business banking setup, tax preparation, and customs brokerage are all provided by vetted Service Partners under Market Express coordination.

SKU (Stock Keeping Unit)

A unique identifier for each distinct product and its variants. Used for inventory management and tracking.

Example: A red t-shirt in size large would have a different SKU than a blue t-shirt in size medium.

SOC 2 Type II

A security compliance certification that evaluates how a company protects customer data over time. It covers security, availability, processing integrity, confidentiality, and privacy.

SSL/TLS (Secure Sockets Layer / Transport Layer Security)

Cryptographic protocols that provide secure communications over the internet. All Market Express services use TLS encryption to protect data in transit.

TAA (Trade Agreements Act)

A law (19 U.S.C. § 2501) requiring that products purchased by the federal government for contracts over $194,000 (as of 2024) must be manufactured or substantially transformed in the US or a TAA-designated country. TAA-designated countries include WTO Government Procurement Agreement (GPA) signatories, free trade agreement partners, Caribbean Basin countries, and least developed countries. Notably, China, Russia, India, and Malaysia are NOT TAA-compliant.

Example: A product assembled in Taiwan (TAA-compliant) can be sold to federal agencies, but the same product assembled in China cannot.

Tariff / Duty

A tax imposed on imported goods. The tariff rate is determined by the product's HTS code and country of origin. Tariffs are a percentage of the customs value.

Example: A 2.5% tariff on $100,000 of goods = $2,500 in duty.

TEU (Twenty-foot Equivalent Unit)

A standard unit of measurement for container shipping capacity, based on a 20-foot container. A 40-foot container equals 2 TEU. TEU is used to measure port throughput and vessel capacity.

Example: A ship with 10,000 TEU capacity can carry 10,000 twenty-foot containers or 5,000 forty-foot containers.

Transfer Pricing

The price at which goods are sold between related entities (like a foreign parent company and its US subsidiary). When properly structured, this allows customs duties to be calculated on the lower intercompany price rather than the full wholesale value.

Example: Instead of paying duty on a $50 wholesale price, you pay duty on a $25 transfer price, cutting your duty in half.

Transshipment

The transfer of cargo from one vessel to another at an intermediate port during transit. Transshipment adds time but may reduce cost or provide routing options when direct service is unavailable.

Example: Cargo from Busan transships in Singapore before continuing to Los Angeles.

US Subsidiary

A legal US business entity (typically an LLC) owned by a foreign parent company. This allows the foreign company to operate in the US market with its own EIN, bank account, and business identity.

Example: Korea Auto Parts Co. (parent) owns Nevada Auto Parts LLC (US subsidiary).

Value-Add Vendor

A vendor who manufactures, integrates, or adds value to products (as opposed to pure resellers or dropshippers). Market Express requires all vendors to be value-add vendors.

Warehouse Storage Overage

Additional warehouse space beyond the 3 EURO1 pallet positions included in membership. Overage is charged at $3.00 per cubic foot per month. Vendors requiring more storage can purchase additional pallet positions as needed.

Example: A vendor using 6 EURO1 pallet positions pays for 3 additional positions beyond the included allocation.

Webhook

An automated message sent from one application to another when a specific event occurs. Used to notify vendors of new orders, shipment updates, and inventory changes.

Wh (Watt-hours)

A unit measuring battery energy capacity. Li-Ion shipping regulations are based on Wh ratings: ≤100Wh (small), 100-300Wh (medium), >300Wh (large).

Example: A laptop battery is typically 50-100Wh. An e-bike battery might be 200-500Wh.