GlossaryEN1 min readUpdated: Jun 14, 2026

Foreign Trade Authorization

Unlike freely tradeable goods, certain products require official authorization before they may cross a border—this is what foreign trade authorization covers.

Last updated: 14 June 2026Published: 19 June 2025

Source: https://www.zoll.de/DE/Privatpersonen/Internationaler-Verkehr/Aussenwirtschaft/Aussenwirtschaft_node.html

Category

Incoterms 2020 Simulator: Who bears costs & risk?

Reading time

1 min

Words

102

Mentioned in

–

Unlike freely tradeable goods, certain products require official authorization before they may cross a border—this is what foreign trade authorization covers. It determines who is permitted to import or export controlled items such as defense equipment, dual-use goods, pesticides, or specific chemicals. Freight forwarders and shippers must engage the relevant authorities well ahead of shipment and secure the permit before goods move, not after. Foreign trade authorization serves as an umbrella term encompassing both export control licenses and import permits; the competent authority varies by commodity and country. Operating without the required authorization exposes all parties to cargo holds and significant penalties.

Next steps

Tools that match this term

Compare IncotermsClarify duties, cost and riskOpen Find HS codeDetermine the tariff number for customsOpen Calculate customs valueWork out import duties and customs valueOpen Calculate transit timeEstimate duration per transport modeOpen

Related Terms

You might also be interested in these terms

Foreign trade

Unlike domestic commerce, foreign trade covers the cross-border exchange of goods between countries or economic blocs – encompassi…

Learn more

Foreign Trade Authorization Number

An exporter must be able to prove authorization for foreign trade operations, licenses, or customs procedures applied—hence the co…

Learn more

Foreign trade analysis

Freight forwarders, customs consultants, importers, and export managers conduct foreign trade analyses to systematically examine g…

Learn more

Import quota

The import quota ratio shows at a glance how heavily a company or industry depends on foreign supply sources. It is calculated as …

Learn more

Statistics revision of foreign trade

A revision of foreign trade statistics occurs when customs authorities or national statistical offices adjust import and export da…

Learn more

Bank Guarantee (Foreign Trade)

In cross-border trade, the bank guarantee steps in wherever distance, differing legal systems, or currency risk make direct trust …

Learn more

⚖️ ICC Incoterms 2020

Incoterms 2020 Simulator: Who bears costs & risk?

Analyze all 11 Incoterms 2020: cost matrix, risk timeline, insurance gap detector and customs responsibility – free, no login required.

Incoterms Simulator →

Logistics knowledge straight to your inbox

Weekly: Top news, industry facts and insights from the world of logistics – free.

Foreign Trade Authorization

Next steps

Related Terms

Foreign trade

Foreign Trade Authorization Number

Foreign trade analysis

Import quota

Statistics revision of foreign trade

Bank Guarantee (Foreign Trade)

Incoterms 2020 Simulator: Who bears costs & risk?

Logistics knowledge straight to your inbox

Community Questions & Answers