This glossary covers 35 sourcing, shipping, and compliance terms a balloon buyer encounters when working with an international supplier. It is grouped into seven sections. Each term has a plain definition, a note on why the buyer should care, and where relevant a FAIR factory position on the term. The certification section separates the standards we hold from the standards we do not hold, so a buyer can confirm coverage up front. For a term that applies to a specific order, contact us at xia@foilballoon.cn.
1. Pricing and Payment Terms
MOQ (Minimum Order Quantity)
The smallest quantity a supplier will accept for a single order. For a custom balloon program, the MOQ depends on the level of customization: a stock shape with custom print has a lower MOQ than a fully custom molded shape.
Why the buyer should care: A low headline MOQ can be misleading if the tooling cost is high. The number to compare is the total cost of the first order, not the per-unit price at the MOQ.
FAIR position: The MOQ for a given design is confirmed at quotation stage.
FOB (Free on Board)
The seller delivers the goods onto the shipping vessel at the port of origin. The buyer bears all costs and risks from that point onward.
Why the buyer should care: FOB is usually the cleanest term for a first order, because the buyer controls the freight forwarder and can compare ocean rates. It also makes the landed cost easier to itemize.
When not to use it: If the buyer does not have a forwarder in the country of origin, FOB adds a step. In that case, CIF or DDP is simpler for a first order.
CIF (Cost, Insurance, Freight)
The seller pays for delivery, insurance, and freight to the destination port. The risk transfers to the buyer when the goods are loaded on the vessel at the port of origin, even though the seller has arranged and paid for the freight and insurance to the destination.
Why the buyer should care: The distinction between cost and risk is the part buyers most often miss. Under CIF, the seller pays the freight, but the buyer owns the risk from the moment the goods are on the vessel. If the cargo is damaged at sea, the buyer's insurance claim is the one that matters, not the seller's.
When to use it: CIF is convenient for a first order when the buyer does not yet have a forwarder relationship. The trade-off is less visibility into the freight cost.
EXW (Ex Works)
The buyer picks up the goods at the seller's facility. All costs beyond the factory gate are the buyer's responsibility, including inland transport, export clearance, and ocean freight.
Why the buyer should care: EXW places the most responsibility on the buyer. It is usually only appropriate when the buyer has its own freight forwarder and export agent in the country of origin.
When not to use it: For a first order, EXW is rarely the right choice. The buyer carries the export clearance work, which the seller is better positioned to handle.
DDP (Delivered Duty Paid)
The seller delivers the goods to the buyer's named place, with all import duties and taxes paid. The buyer receives the goods at the door, with no further customs work.
Why the buyer should care: DDP is the simplest term for the buyer, but it is also the term where the seller has the most control over the final cost. A DDP quote should always be compared against an FOB quote plus a separately quoted freight and duty estimate, so the buyer can see the markup.
When to use it: DDP is common for a sample order or a small trial order. For a volume program, FOB or CIF usually gives the buyer better cost visibility.
T/T (Telegraphic Transfer)
A bank-to-bank wire transfer. T/T is the most common payment method for a first order with a Chinese supplier.
Why the buyer should care: A typical T/T structure is a 30% deposit on order confirmation and a 70% balance against a copy of the bill of lading. The exact split for a given program is confirmed at quotation stage.
L/C (Letter of Credit)
A bank instrument in which the buyer's bank guarantees payment to the seller once the seller presents a defined set of shipping documents. An L/C at sight is payable on presentation of those documents.
Why the buyer should care: An L/C reduces the risk for both sides on a large order. It is also more expensive and more document-heavy than T/T. For a program where the order value is significant and the buyer wants a bank-backed payment, an L/C is the standard option.
When not to use it: For a first sample order, an L/C is rarely worth the bank fees. T/T is more practical at that stage.
Deposit and balance
The two payments in a T/T structure: a deposit at order confirmation and a balance before shipment or against a copy of the shipping documents.
Why the buyer should care: The deposit split is a negotiation point. A lower deposit improves the buyer's cash flow but increases the seller's risk. A higher deposit can unlock a lower unit price for a large program.
2. Lead Time and Production Terms
Lead time
The time from order confirmation to the shipment being ready. Lead time is usually quoted in weeks and covers the production window only, not the ocean transit time.
Why the buyer should care: Lead time and transit time are two separate numbers. A program that plans around lead time alone will miss its delivery window. The lead time for a given order is confirmed at quotation stage.
Sample lead time
The time to produce a pre-production sample. This stage is used to verify the design, the print, and the film structure before a full run.
Why the buyer should care: The sample lead time is often the longest single step in a custom program, because it includes the artwork review and the first tooling run. It should be quoted separately from the production lead time.
Production lead time
The time for the full production run after sample approval. This window covers the extrusion, printing, forming, inspection, and packing stages.
Why the buyer should care: The production lead time starts after the sample is approved, not after the order is placed. If the sample stage takes three weeks, the total time from order to shipment is sample lead time plus production lead time.
Trial order
A smaller first order placed to verify the supplier's quality, communication, and delivery before a full-scale program.
Why the buyer should care: A trial order is the lowest-risk way to qualify a new supplier. It also gives the buyer a production sample to compare against the next order.
Golden sample
A signed, retained sample that both the buyer and the seller agree represents the approved quality standard for the program. It is the reference against which each production run is compared.
Why the buyer should care: A golden sample turns a quality dispute into a comparison. Without it, a claim that "the shipment does not match the sample" has no baseline.
Mass production
The full production run that follows sample approval. For a balloon program, this stage covers the extrusion of the film, the rotogravure printing, the forming and sealing of the balloon, and the batch inspection.
Why the buyer should care: The mass production stage is where a program's lead time and cost are set. Any change to the artwork or the film structure after the mass production begins adds a new tooling run.
3. Quality and Inspection Terms
AQL (Acceptable Quality Level)
A sampling inspection standard used to decide whether a production batch is acceptable. AQL is not a simple percentage. It is an acceptance quality limit that, combined with the batch size and the inspection level, determines the sample size and the accept/reject number. An AQL of 2.5 does not mean "2.5% defective items are acceptable". It means the inspection plan is set so that a batch with a defect rate at or below the AQL has a high probability of being accepted, and a batch above it has a high probability of being rejected.
Why the buyer should care: AQL is the number that decides whether a container is released or held. It should be agreed in writing before production, not after a defect is found.
FAIR position: The AQL and inspection level for a given order are confirmed at quotation stage against the buyer's QC profile.
Pre-production sample
A sample produced before the full production run, used to verify the design and the quality. Approval of the pre-production sample is what triggers the full run.
Why the buyer should care: The pre-production sample is the buyer's last chance to change the design, the color, or the film structure before the mass run. After that, a change adds cost and time.
Production sample
A sample taken from the actual production run, used to confirm that the delivered batch matches the approved pre-production sample.
Why the buyer should care: This is the sample a buyer can hold as a reference for an incoming inspection. It should be sealed and retained for the length of the program.
Third-party inspection
An inspection performed by an independent agency, such as SGS, Bureau Veritas, or Intertek, at the factory before shipment.
Why the buyer should care: A third-party inspection is the buyer's independent check on the batch. It is usually commissioned by the buyer and paid by the buyer, and the report goes to the buyer only.
When to use it: For a first order or a high-value order, a third-party inspection is a low-cost way to reduce the risk of a non-conforming shipment.
COA (Certificate of Analysis)
A document issued by the factory for a specific production batch, listing the measured values for the batch against the agreed specification. A COA is a batch record, not a third-party certification.
Why the buyer should care: A COA is the document that ties a shipment to its test data. For a program that requires traceability, the COA should be issued per batch, not per order. The COA format and parameters for a given program are confirmed at quotation stage.
QC report
The internal inspection record the factory produces for a batch. A QC report can cover the visual inspection, the dimensional check, the pressure-hold inspection, and the packing check.
Why the buyer should care: A QC report is the factory's own record. It is useful as a baseline, but it is not a substitute for a third-party inspection if the program needs independent verification.
4. Shipping and Logistics Terms
20ft GP (20-foot general purpose container)
A standard 20-foot dry container. It is the smaller of the two common container sizes and is used for a partial shipment or a smaller volume program.
Why the buyer should care: The 20ft container has roughly half the internal volume of a 40ft. For a program that ships below a 40ft fill, the 20ft can reduce the freight cost per unit compared to an LCL shipment.
40ft GP (40-foot general purpose container)
A standard 40-foot dry container, with the same internal height as the 20ft.
Why the buyer should care: The 40ft GP is the workhorse of a volume balloon program. The freight cost per CBM is usually lower than on a 20ft, because the fixed port charges are spread over twice the volume.
40ft HC (40-foot high cube container)
A 40-foot container with a higher internal height than a standard 40ft GP. It is the most common container for a full-volume balloon program.
Why the buyer should care: The extra height on the HC gives roughly 10% more internal volume than a 40ft GP for a small freight premium. For a light, bulky product like balloons, the extra height often reduces the number of containers required. The container type and loading plan for a given order are confirmed at quotation stage.
CBM (Cubic meter)
A measure of shipment volume. CBM is calculated by multiplying length, width, and height in meters. Ocean freight is often quoted per CBM for LCL shipments and per container for FCL shipments.
Why the buyer should care: CBM is the number that decides whether a shipment is cheaper as LCL or as FCL. A useful rule of thumb for a light product is that a shipment above roughly 15 CBM usually costs less as a 20ft FCL than as LCL. The exact break point for a given route is confirmed at quotation stage.
How to calculate it: A carton measuring 0.6 m × 0.4 m × 0.4 m is 0.096 CBM. A 500-carton shipment of that size is 48 CBM, which is above a 40ft HC fill. The packing density for a given order is confirmed at quotation stage.
LCL (Less than Container Load)
A shipment that shares a container with cargo from other shippers. The freight forwarder consolidates multiple LCL shipments into one container.
Why the buyer should care: LCL is the practical option for a trial order or a smaller program. The trade-off is a longer transit time and more handling at the consolidation warehouse.
When not to use it: For a high-volume program, LCL usually costs more per CBM than FCL, and it adds handling steps that can damage a light film product.
FCL (Full Container Load)
A shipment that fills a full container. The buyer pays for the container, not for the volume.
Why the buyer should care: For a volume program, FCL gives the lowest freight cost per unit and the shortest transit time, because the container is not opened for consolidation.
Consolidation
Combining multiple orders or multiple SKUs into one shipment to reduce the per-unit shipping cost.
Why the buyer should care: Consolidation is useful for a program that sources balloons and accessories from the same origin. It reduces the number of containers and the number of customs entries. The consolidation plan for a given program is confirmed at quotation stage.
Bill of Lading (B/L)
The document issued by the ocean carrier that serves as the contract of carriage and the document of title to the goods. The original B/L is what the consignee presents at the destination port to release the container.
Why the buyer should care: The B/L is the document that releases the goods. A common payment structure is a 30% deposit at order and a 70% balance against a copy of the B/L. A telex release is a common alternative that avoids couriering the original.
Demurrage and Detention
Two charges the carrier applies when a container is not returned within the free time. Demurrage applies while the container is inside the port terminal. Detention applies while the container is outside the terminal, for example at the buyer's warehouse.
Why the buyer should care: These charges accumulate daily and are a common hidden cost in a first import. The free time and the daily rate for a given route are set by the carrier and should be confirmed before booking.
Freight forwarder
A company that arranges the transport of goods on behalf of the shipper. The forwarder books the space, prepares the documents, and coordinates the customs clearance at both ends.
Why the buyer should care: A good forwarder reduces the administrative load on a first import. The buyer's own forwarder also makes an FOB arrangement easier, because the buyer keeps control of the routing.
5. Compliance and Certification Terms
A glossary of certification terms has to be read carefully. The definitions below explain what each standard covers. The standards a supplier holds are separate from the definitions. We list both, so a buyer can confirm coverage up front.
EN 71 (European toy safety standard)
The European standard for toy safety. EN 71 has several parts: Part 1 covers mechanical and physical properties, Part 2 covers flammability, and Part 3 covers migration of certain elements. A supplier that claims EN 71 coverage should state which parts the report covers.
What we hold: EN 71 Parts 1, 2, and 3 under SGS report number SHTY130500007975-01. Coverage of a specific SKU is confirmed at quotation stage. See our EN71 coverage page.
RoHS (Restriction of Hazardous Substances)
An EU directive that restricts the use of certain hazardous substances. For a balloon product, RoHS is relevant for the chemical restriction side of the film and the ink. The current version is RoHS (EU) 2015/863.
What we hold: RoHS (EU) 2015/863 under SGS report number SHAHG2207652301, covering the tested DEGRADING BALLOON sample. Coverage of a specific SKU is confirmed at quotation stage. See our RoHS coverage page.
ISO 14855-1:2012 (industrial composting standard)
A standard for determining the ultimate aerobic biodegradability of plastic materials under controlled composting conditions. ISO 14855-1:2012 is a distinct standard from EN 13432.
What we hold: ISO 14855-1:2012 under SGS report number SHMR220700361301. The report covers a PLA degrading balloon sample tested under controlled industrial composting conditions. Test material average biodegradation was 77.8% within a 45-day test period. Coverage of a specific SKU is confirmed at quotation stage. See our SGS report coverage page.
PEBA (Pro Environment Balloon Alliance)
An industry alliance that promotes responsible balloon use and disposal. FAIR is a member of PEBA and supports the alliance's code of conduct on balloon releases.
What we hold: PEBA membership. See our PEBA compliance guide for detail.
CE marking and DoC (Declaration of Conformity)
A CE mark on a product declares that the product meets the applicable EU directives. It is supported by a Declaration of Conformity, which is a document signed by the manufacturer listing the directives and standards the product is assessed against. CE marking is not a certification issued by a third party; it is a self-declaration by the manufacturer.
Why the buyer should care: A CE mark without a supporting DoC is not evidence on its own. For a toy product, the DoC should reference the applicable EN 71 parts.
Standards we do NOT hold:
- ASTM F963 — not held. ASTM F963 is the US consumer product safety specification for toys. It is a separate standard from EN 71. A program that requires ASTM F963 coverage should confirm that up front.
- EN 13432 — not held. EN 13432 is the European standard for industrial composting. The report we hold for the biodegradable line is ISO 14855-1:2012, which is a distinct standard.
- ASTM D6400 — not held
- BPI — not held
- ISO 9001 — not held
- ISO 14001 — not held
- REACH — not held
- US CPSIA — not held
- California Prop 65 — not held
- US CONEG — not held
- FSC — not held for the balloon line. FSC applies to paper products; for paper sticks or kraft components, ask us for the supplier's documentation.
6. Incoterms at a Glance
Incoterms are the standard trade terms published by the International Chamber of Commerce. They define who arranges the transport, who pays for it, and where the risk transfers from the seller to the buyer. The four terms below are the ones a balloon program uses most often. The list is not exhaustive.
| Term | Who arranges freight | Where risk transfers | Typical use |
|---|---|---|---|
| EXW | Buyer | At the seller's factory | When the buyer has its own export agent at origin |
| FOB | Buyer | When the goods are on the vessel at the port of origin | First order when the buyer has a forwarder |
| CIF | Seller | When the goods are on the vessel at the port of origin | First order when the buyer has no forwarder yet |
| DDP | Seller | At the buyer's named place | Sample orders and small trial orders |
The term that applies to a given order is confirmed at quotation stage. For a volume program, FOB or CIF usually gives the buyer the best cost visibility. For a sample or trial order, DDP is often the simplest.
7. Related Guides
For readers who need more detail on a specific sub-topic:
Have a sourcing term you want defined for your program? Send us the term and we will confirm the definition against your order.
Email xia@foilballoon.cnResponse within one business day · Sample service available
About FAIR — Kunshan Fair Craft Products Co., Ltd.
FAIR is a balloon manufacturer based in Kunshan, China, producing foil balloons, custom shaped foil balloons, PLA-based biodegradable foil balloons, and custom printed balloon products for global brands, event companies, retail chains, and wholesale novelty distributors. For inquiries: xia@foilballoon.cn