110 terms merchandisers, IE specialists, QA auditors, commercial officers and compliance teams actually use — SMV, GSM, AQL, FOB, CBM, L/C and more. Every definition is taken from AIOC lessons, so each term means exactly what our lessons mean by it, with links to the lessons, tools and guides where it is explained in context.
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Buying, costing, sampling and order terms used by merchandisers and commercial teams.
A preliminary commercial invoice issued by the exporter to the buyer detailing product specifications, unit prices, total value, and banking details to enable Master L/C opening.
In practice: Must match the buyer's PO 100% in price, quantity, and description.
An international commercial trade term (Incoterms 2020) where the seller pays for all manufacturing, trims, packaging, inland transport, export customs clearance, and loading onto the vessel at the named port of origin (e.g., FOB Chittagong).
In practice: The buyer assumes all freight, insurance, and import duty risks once the cargo passes the vessel rail.
A legally binding commercial purchase contract issued by the apparel buyer authorizing the factory to manufacture a specified style, quantity, size ratio, and colorway at an agreed unit price.
In practice: Never begin bulk raw material procurement without a confirmed written PO.
The price charged per single unit of measurement (piece, yard, meter, kg) before extended multiplication.
In practice: Always compare unit prices against original supplier price lists and factory costing sheets.
A comprehensive engineering document created by the buyer containing flat sketches, Point of Measure (POM) charts, Bill of Materials (BOM), stitch/seam details, label placements, and packaging specs.
In practice: The master blueprint from which all patterns and samples are constructed.
The comprehensive inventory master list specifying all raw materials, fabrics, sewing trims, packaging components, and thread consumptions required to manufacture one unit of a garment.
In practice: Attached directly to the Internal Work Order for warehouse material issuance.
A legal document issued by the seller to the buyer detailing the products sold, quantities, unit prices, total value, Incoterms, and payment terms.
In practice: Primary document for customs valuation and L/C payment.
A price basis under which the seller pays the cost of the goods plus freight plus marine insurance to the destination port.
In practice: CIF adds insurance to CFR. The seller arranges insurance but the buyer carries the risk in transit.
A price basis under which the seller pays the cost of the goods plus freight to the destination port. Risk passes to the buyer once the goods are loaded on board.
In practice: CFR includes freight but not insurance.
The maximum seller obligation Incoterm where the seller delivers goods cleared for import, paying all transport, destination customs, and import duties.
In practice: Requires foreign customs clearance capability.
The direct manufacturing cost charged by the factory to cut, sew, trim, press, and pack the garment, covering operator labor, factory power, building rent, and line depreciation.
In practice: Calculated as: CM = (Garment SMV × Minute Cost) / Target Line Efficiency %.
The total calendar time elapsed from the initial release of a purchase order or requisition until the final delivery and physical acceptance of the raw material, sample, or finished production batch.
In practice: Always verify whether a supplier quotes lead time in working days or calendar days.
The master operational schedule for an apparel order, detailing every critical milestone from PO confirmation to final ex-factory shipment with planned dates, actual completion dates, responsible owners, and variance indicators.
In practice: Also known in international buying houses as the Critical Path Schedule or Order Tracking Matrix.
A commercial document or quotation issued by an indentor or domestic textile mill detailing product specifications, price, and delivery terms.
In practice: Serves as the basis for opening a Local BTB L/C.
The physically signed, tagged, and wax/lead sealed PP sample returned by the buyer or buying house QA, serving as the inviolable quality benchmark on the production floor.
In practice: Kept securely in the factory QA office; never altered.
The final, definitive sample constructed on the mass production floor using 100% bulk fabric, approved trims, and correct factory machinery.
In practice: Buyer seal on the PP sample is the legal authorization to start bulk fabric cutting.
The initial physical trial sample developed from a designer's sketch or preliminary Tech Pack to verify overall styling, silhouette, proportions, and manufacturing feasibility.
In practice: Substitute fabrics and trims are acceptable; exact color is not required.
A critical technical sample sewn to exact measurements and tested on a live fit model or calibrated dress form to evaluate garment balance, comfort, drape, and grading proportions.
In practice: Must be made in the actual base fabric weight, construction, and stretch percentage.
A printed fabric sample (typically 1 to 2 yards) created on a sample table or digital printer to evaluate print screen sharpness, registration, repeat size, and colorways.
In practice: Requires buyer written approval before engraving bulk rotary or flatbed print screens.
The price of one minute of factory time: total factory operating expense divided by total produced minutes at target efficiency. It converts a time saving into a money saving.
In practice: The same CPM from Module 1 is used here, which keeps the course consistent.
Time study, line balancing, cutting and sewing-floor terms used by industrial engineers.
The maximum allowable cycle time per workstation needed to match the customer demand or hourly target (Net Available Seconds ÷ Target Pieces).
In practice: Target: Every station cycle time must be ≤ Takt Time.
The mathematical percentage of total fabric surface area utilized by nested garment pattern pieces within a marker layout compared to the total marker rectangle area.
In practice: Target marker efficiency in apparel export factories is ≥ 85% to 88%.
The total volume of unfinished garments, cut panels, or sub-assemblies currently undergoing processing between the cutting room, sewing lines, washing plant, and finishing floor.
In practice: Excessive WIP on the floor indicates severe line bottlenecks and increases defect rates.
The percentage ratio of total standard earned minutes produced by a line compared to the total labor minutes attended: Efficiency % = (Earned Minutes / Available Minutes) × 100.
In practice: The primary operational KPI in garment manufacturing.
The individual workstation with the longest cycle time or lowest hourly output, dictating the maximum throughput of the entire line.
In practice: Must be reinforced with helpers or extra machines.
A distinct, indivisible part of a specified activity composed of one or more basic motions, chosen for convenience of observation, measurement, and analysis.
In practice: E.g., "Pick front panel and place under presser foot".
Actual cost minus standard cost. A positive variance is unfavourable because the factory spent more than planned; a negative variance is favourable.
In practice: Always state whether a variance is favourable or unfavourable — the sign alone confuses readers.
A visual grid mapping every sewing operator against all required line operations and machine types, scoring their proficiency from Level 1 to 4.
In practice: Must be updated monthly by IE and supervisors.
A lean manufacturing configuration where garments move through sewing workstations one piece at a time rather than in large batch bundles.
In practice: Dramatically increases VAR % and slashes throughput time.
The target cycle time allocated to each individual workstation, calculated by dividing the total garment Standard Allowed Minutes (SAM) by the number of operators.
In practice: Basis for line balancing.
The actual arithmetic mean time recorded on a stopwatch during physical observation of an operation on the shop floor before rating or allowances are applied.
In practice: Reflects individual operator speed, not standard time.
The mathematically engineered time (in minutes) required by an average skilled operator to complete a specific sewing operation or full garment assembly under standard working conditions.
In practice: Determines daily line output targets and factory CM pricing.
The standardized time (in decimal minutes) required by a qualified operator working at standard performance to complete a specific manufacturing operation.
In practice: Determined by Industrial Engineering (IE) time-and-motion studies.
A set of fundamental rules and guidelines designed to reduce unnecessary body movements, minimize fatigue, and maximize human working efficiency in industrial workplaces.
In practice: Originally formulated by Frank and Lillian Gilbreth and expanded by Ralph Barnes.
The industrial engineering practice of equalizing operator cycle times across all workstations on a sewing line to eliminate bottleneck stations, prevent Work-in-Progress (WIP) accumulation, and maximize hourly output.
In practice: Conducted by IE technicians using SMV breakdown and pitch diagram analysis.
The actual elapsed time taken by an operator to complete one full repetitive work cycle from the start of the first element to the completion of the final element.
In practice: Measures live floor performance.
Fabric consumed beyond the net garment requirement, including marker waste, end-bit loss, and damaged panels.
In practice: Measured in metres or kilograms first, then converted to taka at the fabric price.
The usable width of the fabric from inner selvedge to selvedge (excluding pinholes/glue edges) across which pattern pieces can be laid without defects.
In practice: Never calculate markers using overall fabric roll width.
The theoretical standard work content generated by the line: Earned Minutes = Total Output (pcs) × Garment SMV.
In practice: Used to calculate true line efficiency.
The extra time added to the Basic (Normal) Time to compensate the worker for physiological needs, physical/mental fatigue, and unavoidable operational/machine delays, establishing a realistic Standard Time.
In practice: Expressed as a percentage of Basic Time.
A printed card or barcoded document attached to a bundle of cut garment panels containing all identifying production and quality data.
In practice: Travels with panels through sewing.
The proportion of different garment sizes nested together within a single CAD cutting marker layout (e.g., S:M:L:XL = 1:2:2:1).
In practice: Directly influences fabric marker efficiency (%) and the number of spreading lays required.
The area between the fabric edge and the stitching line, typically 6 mm (1/4") for knits and 10 mm to 12 mm (3/8" to 1/2") for wovens.
In practice: Notches must never penetrate past 50% of allowance.
AQL sampling, defect classification and inspection terms used by QA and auditors.
A formal, structured operational strategy developed to recover lost time or rectify quality defects, detailing specific tasks, resource allocations, departmental owners, and revised milestone completion dates.
In practice: A professional CAP must accompany every formal delay notification to international buyers.
A standardized quality audit conducted by the buyer's QA or a designated third-party inspection agency (e.g., SGS, Intertek, Bureau Veritas) on a statistical sample (AQL 1.5/2.5) after an order is at least 100% produced and at least 80%–100% packed into master shipping cartons.
In practice: Passing the FRI produces the official Inspection Certificate required for commercial banking negotiation under Master Letters of Credit.
An alphabetical letter (A through R) derived from the lot size and the chosen inspection level that dictates the number of units to be drawn for audit.
In practice: Determined via ISO 2859-1 Table 1.
The lowest number of nonconforming units or defects found in the sample that requires the rejection of the inspection lot.
In practice: In single normal sampling, Re is always Ac + 1.
A failure to meet a requirement of a code, standard, law or buyer policy, identified during an audit.
In practice: Gradings such as critical, major and minor vary by programme, so always confirm the grading used by the audit in question.
A visual phenomenon where two fabric swatches appear to match under one light source (e.g., D65 daylight) but noticeably mismatch under a different light source (e.g., TL84 or CWF).
In practice: Always evaluate lab dips and bulk fabric swatches under the buyer's primary and secondary light sources in a calibrated light box.
Corrective Action Plan: the documented response to each audit non-compliance, stating root cause, corrective action, responsible person, and deadline.
In practice: A CAPA without evidence of completion does not close a finding.
A specific change to a process, assigned to one owner with a deadline and a measurable savings target, arising from an audit finding.
In practice: An audit finding without a corrective action is only an observation.
A statistical sampling standard (such as ISO 2859-1 or ANSI/ASQ Z1.4) defining the maximum number of defective units permitted in a random sample batch during final inspection.
In practice: Common industry standards are AQL 1.5, 2.5 (Major Defects), and 4.0 (Minor Defects).
The highest number of nonconforming units or defects found in the sample that still permits the acceptance of the inspection lot.
In practice: If defects <= Ac, the lot passes.
The standard international visual inspection system (ASTM D5430) used to grade fabric roll quality by assigning penalty points (1 to 4 points) based on defect size.
In practice: Standard commercial acceptance threshold is a maximum of 28 to 40 penalty points per 100 square yards.
The standard apparel manufacturing quality metric representing the total number of defects discovered per 100 inspected garments: (Total Defects / Total Inspected) * 100.
In practice: Allows total defect count to exceed garment count.
The number of individual stitches formed within one linear inch of seam. Higher SPI gives higher seam strength but requires more thread and sewing time.
In practice: Knitwear standard is 10–12 SPI; high-end dress shirts require 16–18 SPI.
A visible color difference between adjacent garment panels cut from different fabric dye lots or rolls.
In practice: Must achieve Grade 4.0 or higher on AATCC Gray Scale.
Any defect that is hazardous to health, unsafe for human wear, violates statutory legal regulations, or compromises consumer safety.
In practice: Standard AQL is 0.0 (Zero Tolerance: Accept 0, Reject 1).
A non-conformity that impairs the physical function, structural durability, fit, or commercial saleability of a garment, likely causing customer returns.
In practice: Standard AQL thresholds are typically 1.5 or 2.5.
A non-conformity that does not impair the functional usability, structural durability, or fit of the garment, but represents a minor cosmetic deviation from first-quality finish.
In practice: Standard AQL thresholds are typically 4.0 or 6.5.
The primary sampling tiers (Level I, Level II, Level III) used for visual, cosmetic, and non-destructive quality inspections where sample size scales with lot volume.
In practice: Level II is the universal standard for ready-made garments.
Yarn, fabric weight and fabric-behaviour terms used in sourcing and textile testing.
The metric measure of fabric weight/density, calculated by weighing a 100 sq cm circular fabric swatch cut with a GSM cutter and multiplying by 100.
In practice: Higher GSM increases fabric consumption weight in kilograms.
The numerical designation indicating the fineness or coarseness of a yarn, defined by the relationship between length and weight.
In practice: In cotton indirect count (Ne), higher numbers denote finer yarns (e.g., 40s is finer than 20s).
The internationally standardized ISO direct unit representing the mass in grams of 1,000 meters of yarn.
In practice: Universal metric unit across all fiber types.
A direct unit expressing the mass in grams of 9,000 meters of filament or yarn.
In practice: Standard for synthetic filaments, silk, and microfibers.
The distortion in circular plain-knit fabrics where vertical wales lean at an angle from the true vertical axis, leading to garment side-seam twisting.
In practice: Major cause of t-shirt rejections.
Extra fabric length booked to compensate for contraction during washing or finishing.
In practice: Applied only to washed or finished pieces, never to the whole order.
Letters of credit, freight, customs and export-document terms used in shipping.
The standard international banking message format used by financial institutions to transmit amendments to an existing documentary Letter of Credit (L/C).
In practice: Required whenever a PO revision alters L/C value, shipment date, or expiry date.
An official commercial document issued by the buyer's appointed freight forwarder confirming that the export cargo has been received in apparent good order and condition at the port of origin CFS/CY.
In practice: The FCR legally proves compliance with FOB delivery terms and triggers payment release under Letters of Credit.
The international standard unit of volume in freight logistics, representing a cube measuring 1 meter in length, width, and height (1 m³ = 1,000,000 cm³).
In practice: Standard ocean freight rate benchmark.
An official certificate issued by the negotiating bank confirming the exact amount of foreign exchange inward remittance received and encashed for an export shipment.
In practice: Mandatory for cash incentive audit.
A bank undertaking to pay the seller when the seller presents documents that comply with the credit terms, shifting payment risk from the buyer to the issuing bank.
In practice: An L/C protects payment but does not remove bank charges or discounting cost.
A formal declaration on factory letterhead signed by the exporter certifying compliance with specific operational conditions (e.g., courier dispatch, shipment notices).
In practice: Must precisely replicate the wording demanded in Field 46A/47A.
A non-negotiable transport document issued by an airline or air freight forwarder covering the carriage of goods by air.
In practice: Serves as receipt and contract of carriage.
Uniform Customs and Practice for Documentary Credits (ICC Publication No. 600), the universally accepted rules governing Letter of Credit transactions worldwide.
In practice: Governs bank document audits.
The standardized international financial message used by banks to issue an official Notice of Refusal for discrepant documentary credit presentations.
In practice: Must list all discrepancies.
A conditional clause inserted into a Letter of Credit that makes the bank payment undertaking dependent upon an event, document, or approval under the unilateral control of the buyer.
In practice: Completely nullifies the independent guarantee of the bank and turns the L/C into an open account risk.
International Standard Banking Practice (ICC Publication No. 745), explaining how UCP 600 rules are applied by documentary credit practitioners.
In practice: Provides definitive guidance on B/L audits.
The broadest standard marine insurance policy covering "all risks" of loss or damage to cargo, except specifically excluded items (e.g., willful misconduct, inadequate packing).
In practice: Gold standard for apparel shipping.
An ocean shipping arrangement where a shipper books and loads an entire container exclusively for their own cargo.
In practice: Standard for orders over 15–20 CBM.
An electronic foreign exchange export authorization form mandated by central banks to monitor export shipments and ensure full repatriation of export earnings.
In practice: Must be issued by commercial bank.
The agreed contractual date by which 100% of finished, inspected, and packed garments must clear factory gates and be handed over to the buyer's designated freight forwarder or logistics carrier.
In practice: Missing the Ex-Factory date breaches the sales contract and exposes the manufacturer to air freight penalties or L/C cancellation.
A smaller ocean container vessel that transports containers from regional hub ports (like Chattogram, Colombo, or Singapore) to deep-sea mother vessels.
In practice: Standard ocean shipping mode for South Asian garment exports.
A legal maritime principle where all cargo owners and the shipowner proportionally share any extraordinary sacrifice or expenditure voluntarily incurred to save the vessel and cargo from total loss.
In practice: Covered under ICC A, B, and C.
A fee charged by the ocean carrier to the cargo owner for using the container equipment inside the port terminal beyond the agreed free time period.
In practice: Calculated on daily tier rate.
Standardized three-letter trade terms (e.g., FOB, FCA, CIF, DDP) published by the International Chamber of Commerce (ICC) defining the exact point of cost, risk, and responsibility transfer between seller and buyer.
In practice: Most apparel exports operate on FOB (Free on Board) port of origin or FCA (Free Carrier).
The offloading of a container from one vessel (feeder) and loading onto another vessel (mother ship) at an intermediate hub port.
In practice: Key point for potential transit delays.
Formal document issued by a carrier or forwarder confirming vessel space, container equipment, cut-off dates, and depot pickup details.
In practice: Contains the unique Booking Reference number.
Clearing & Forwarding Agent — an entity licensed by the National Board of Revenue to act on behalf of shippers in clearing goods through customs.
In practice: Licensed customs broker.
An ultra-large ocean container vessel (10,000 to 24,000 TEUs) operating long-haul intercontinental trade lanes between transshipment hubs and destination markets.
In practice: Transoceanic carrier.
An official document used in international commerce to certify that the products in a particular export shipment have been completely produced, manufactured, or processed in a specific country.
In practice: Determines applicable tariff rate.
The specific national and international criteria applied to determine the national source of a product for tariff preferences, quotas, and commercial policy.
In practice: Defined in trade agreements.
Standard commercial packaging unit for small trims (buttons, rivets, eyelets) equal to 12 dozen or 144 pieces.
In practice: 1 Great Gross = 12 Gross = 1,728 pieces.
The weight of an empty container, corrugated carton, or packaging vehicle without the weight of the goods contained inside.
In practice: Gross Wt = Net Wt + Tare Wt.
A legally binding document issued by a maritime carrier to a shipper detailing the type, quantity, and destination of goods, serving as a receipt, contract, and document of title.
In practice: Governed by Hague-Visby / Hamburg Rules.
Ethical trade, audit programme and worker-rights terms used in social compliance.
A formal, accessible route through which workers can raise concerns about working conditions, treatment or rights, and receive a response.
In practice: Effectiveness is judged by worker trust and usage, not by the existence of a policy document.
Supplier Ethical Data Exchange: an online platform where suppliers share ethical trade data and audit reports with their buyers.
In practice: Keep the Sedex site profile and SAQ current at all times, not only before audits.
Sedex Members Ethical Trade Audit: a social audit methodology built on the ETI Base Code, used by buyers worldwide to assess supplier factories.
In practice: A SMETA report is shared on the Sedex platform, so one audit can serve multiple buyers.
The Business Social Compliance Initiative of amfori, a business association programme under which member buyers require their producers to be audited against a common Code of Conduct.
In practice: One BSCI audit can serve multiple amfori member buyers.
An auditable social accountability standard published by Social Accountability International (SAI), covering 9 elements of decent work plus a management system.
In practice: Because it is certifiable, SA8000 results are binary: certified or not.
Worldwide Responsible Accredited Production — an independent, facility-based social compliance certification programme for factories, principally in apparel and sewn products.
In practice: The certificate belongs to the facility, so it can be shown to any buyer.
A buyer written set of labour, safety, environmental, and ethical requirements that suppliers must meet as a condition of business.
In practice: Each buyer code differs in detail — file them separately and map them to one system.
A category of critical violation — such as child labour, forced labour, or life-threatening safety failures — that can suspend orders immediately regardless of other performance.
In practice: Eliminate zero-tolerance risks before worrying about minor findings.
Under SA8000, the supportive programme required when child labour is found, focused on the child welfare and education rather than punishment.
In practice: Budget for remediation before you need it; discovering a case without a procedure is itself a finding.
Work performed involuntarily under menace of penalty, as defined by ILO Convention 29. It includes debt bondage, document retention, and restriction of movement.
In practice: A single strong indicator can be enough for auditors to raise a critical finding.
The Roadmap to Zero programme, an industry collaboration working to eliminate hazardous chemicals from textile and footwear supply chains.
In practice: Use its MRSL, guidelines, and tools as a system, not as isolated documents.
An independent product safety certification and labelling system for textile articles, testing for harmful substances against the requirements of the standard.
In practice: Certifies defined products, not factories.
The Facility Environmental Module of the Higg Index: a self-assessment questionnaire covering a facility's environmental performance.
In practice: Complete it annually and keep the evidence pack for verification.
A list restricting hazardous substances in the chemical formulations used during manufacturing, so restricted substances never enter production.
In practice: The ZDHC MRSL is the most widely used manufacturing list in apparel.
The SA8000 remuneration element process of assessing whether wages meet basic needs and planning progress toward that goal.
In practice: Document the assessment method, not just the conclusion.
Prefer a printable version for commercial terms? The Download Center offers a free PDF, Commercial Abbreviations and Incoterms Glossary, in the Commercial & Shipping collection.
Browse Commercial & Shipping downloadsA reference of 110 garment, textile, merchandising, quality, commercial and compliance terms, grouped into 6 topic areas. Every definition is taken from AIOC lessons, so each term means exactly what AIOC lessons mean by it.
Each definition comes from the terminology section of an AIOC lesson that uses the term. The "Learn more" links under every term open the lessons where the term is defined and used in context.
SMV stands for Standard Minute Value: the standardized time, in decimal minutes, required by a qualified operator working at standard performance to complete a specific manufacturing operation. It is determined by Industrial Engineering (IE) time-and-motion studies.
GSM stands for grams per square meter: the metric measure of fabric weight and density, calculated by weighing a 100 sq cm circular fabric swatch cut with a GSM cutter and multiplying by 100. Higher GSM increases fabric consumption weight in kilograms.
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