B2B Glossary
Key terms in natural product sourcing, trade logistics, quality analysis, and international B2B commerce — explained for procurement professionals.
Quality & Analysis
Certificate of Analysis (CoA)
→A document issued by a manufacturer or laboratory confirming the chemical composition, purity, and quality parameters of a product batch.
GC-MS (Gas Chromatography–Mass Spectrometry)
An analytical technique combining gas chromatography and mass spectrometry to identify and quantify volatile compounds in essential oils, confirming authenticity and detecting adulterants.
Heavy Metals Testing
Analysis of a botanical product for toxic elements including lead, cadmium, arsenic, and mercury, required by EU and FDA regulations for food-grade compliance.
Maximum Residue Limit (MRL)
The legally permitted maximum concentration of a pesticide residue in food, set by EU Regulation (EC) No 396/2005. Exceeding the MRL leads to import rejection.
Moisture Content
The percentage of water in a dried botanical material; most dried herbs require ≤10% moisture for safe storage and to prevent microbial growth.
Refractive Index
A measure of how light bends passing through a liquid, used to verify purity and authenticity of essential oils and fixed oils.
Specific Gravity
The ratio of a substance's density to the density of water, used to authenticate essential oils; deviations from the reference range indicate dilution or adulteration.
Trade & Logistics
Bill of Lading (B/L)
A legal document issued by a carrier serving as receipt for shipped goods, evidence of contract of carriage, and document of title required to take delivery.
CIF (Cost, Insurance & Freight)
An Incoterms rule where the seller pays freight and minimum insurance to the destination port; risk transfers to buyer once goods are loaded on the vessel.
DDP (Delivered Duty Paid)
Maximum seller obligation: goods delivered to the buyer's premises, cleared for import, with all duties and taxes paid by the seller.
FCL / LCL
FCL (Full Container Load) means one buyer fills an entire container; LCL (Less than Container Load) consolidates cargo from multiple shippers. LCL suits smaller volumes.
FOB (Free On Board)
An Incoterms rule where the seller delivers goods loaded onto the vessel at the port of shipment; the buyer bears all costs and risks from that point.
Incoterms
A set of 11 standardized international trade terms published by ICC defining buyer and seller obligations for delivery, risk, insurance, and costs.
Letter of Credit (L/C)
A payment instrument issued by a bank guaranteeing seller payment once documentary requirements are fulfilled; commonly used in first-time B2B transactions.
Phytosanitary Certificate
An official document certifying that a plant-based shipment meets the phytosanitary import requirements of the destination country and is free from regulated pests.
Regulatory & Certification
EUDR (EU Deforestation Regulation)
EU Regulation 2023/1115 requiring due diligence to prove products have not contributed to deforestation. Requires geolocation data for in-scope commodities from 2025.
GMP (Good Manufacturing Practice)
→Production and quality assurance principles ensuring products are consistently manufactured to appropriate quality standards. Required for pharmaceutical and supplement suppliers.
HACCP
→A systematic preventive approach to food safety identifying physical, chemical, and biological hazards and establishing critical control points to prevent them.
Halal Certification
→Verification that ingredients and production processes comply with Islamic dietary law. Key for accessing GCC, Southeast Asian, and Muslim-majority markets.
ISO 22000
→International standard for food safety management systems integrating HACCP with ISO management principles. Signals rigorous safety controls to global buyers.
Kosher Certification
→Verification that ingredients and processing conform to Jewish dietary laws (kashrut). Botanical ingredients typically qualify as pareve (neutral) if no animal contact occurs.
Organic Certification
→Third-party verification that products are grown without synthetic pesticides, GMOs, or synthetic fertilizers. EU Organic (2018/848) and USDA NOP are key standards.
REACH (EU Chemical Regulation)
EU Regulation (EC) No 1907/2006 on Registration, Evaluation, Authorisation and Restriction of Chemicals. Essential oils may require registration if imported above 1 tonne/year.
Products & Processing
CO₂ Extract (Supercritical)
→Botanical extract produced using pressurized carbon dioxide as solvent, capturing a broader phytochemical profile than steam distillation with zero solvent residue.
Dry Extract (Powdered)
A botanical extract from which solvent has been completely removed, yielding a dry powder with standardized active marker content for precise dosing.
Essential Oil
→A concentrated hydrophobic liquid containing volatile aroma compounds from plant material, obtained by steam distillation, cold pressing, or dry distillation.
Geothermal Drying
→Low-temperature drying using geothermal energy that preserves volatile compounds, color, and active ingredients better than conventional high-heat drying methods.
Hydrosol (Floral Water)
The aqueous by-product of steam distillation, containing trace essential oil components and water-soluble plant compounds. Used in cosmetics and food flavoring.
Oleoresin
A semi-solid extract of a spice or plant containing both the volatile essential oil fraction and non-volatile resinous components, used as a concentrated flavor ingredient.
Steam Distillation
The most common method for essential oil extraction, where steam passes through plant material to vaporize volatile compounds which are then condensed and collected.
Chemistry
Aldehyde (in essential oils)
Oxygen-containing compounds (R-CHO) in essential oils with fresh, citrus-like scents. Major examples: citral (lemongrass), citronellal (citronella). May cause skin sensitization at high concentrations.
Chemotype (CT)
A chemically distinct variety within the same plant species producing different dominant compounds due to environmental or geographic factors (e.g., Thymus vulgaris CT thymol vs. CT linalool).
Monoterpene (C₁₀)
The most abundant terpene class in essential oils (two isoprene units, C₁₀H₁₆). Key examples: limonene (citrus), pinene (pine), linalool (lavender), menthol (peppermint).
Phenylpropanoid
Secondary metabolites derived from phenylalanine found in essential oils. Includes eugenol (clove), anethole (anise), cinnamaldehyde (cinnamon), and estragole (tarragon).
Sesquiterpene (C₁₅)
Terpenes composed of three isoprene units (C₁₅H₂₄), less volatile than monoterpenes, contributing to base notes. Examples: bisabolol (chamomile), caryophyllene (clove).
Terpene
A large class of organic compounds produced by plants, built from isoprene units (C₅H₈)ₙ, forming the primary constituents of most essential oils.
Business & Commercial
Bulk Supply
→Sale of products in large undivided quantities (drums, IBCs, tankers) without retail packaging. Standard B2B format for essential oils and botanical extracts.
Forward Supply Contract
A bilateral agreement fixing price, volume, and delivery schedule for future delivery. Hedges both buyer and seller against price volatility in seasonal botanical markets.
Lead Time
Total elapsed time from order placement to delivery at the buyer's facility. For botanical products from Turkey, typical lead times range from 2–4 weeks (ex-stock) to 8–12 weeks (harvest-dependent).
MOQ (Minimum Order Quantity)
→The smallest quantity a supplier will sell in a single order. Essential oil MOQs typically range from 1 kg (specialty) to 200+ kg (commodity). Exceeding MOQ unlocks volume pricing.
Private Label
→A business model where a manufacturer produces goods sold under the buyer's brand. Allows brands to offer essential oils and extracts without in-house production capability.
SDS (Safety Data Sheet)
A standardized document providing health, fire, and environmental hazard information plus safe handling procedures. Required for international shipment of classified chemical substances.
Spot Order
A one-time purchase at the current market price for immediate delivery, as opposed to a forward contract. Provides flexibility but exposes the buyer to seasonal price volatility.
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