600 Essential Customs and Trade Terms You Need to Know for International Shipping and Logistics
Navigating international shipping and customs procedures can be complex, especially with the vast number of technical terms involved. Whether you’re new to global trade or a seasoned professional, understanding key customs and trade terms is crucial for smooth operations and avoiding costly delays. In this comprehensive guide, we’ve compiled 600 essential terms related to customs, logistics, tariffs, and trade regulations that every importer, exporter, and logistics professional should know. By familiarizing yourself with these terms, you’ll be better equipped to navigate the intricate world of international trade and streamline your shipping processes.
Bill of Lading (B/L): A legal document that serves as a receipt for cargo received for shipment, a contract for the transportation of goods, and proof of ownership.
Customs Declaration: A form completed by an importer or exporter that provides information about the goods being imported or exported for customs clearance.
Harmonized System (HS): An internationally standardized system of names and numbers used to classify traded products.
Import Duty: Tax imposed by a government on goods brought into the country.
Export Duty: Tax or tariff placed on goods being exported.
Tariff: A tax on imports or exports between countries, usually intended to protect domestic industries.
Customs Broker: A professional who helps importers and exporters comply with customs regulations, completing necessary paperwork and facilitating the movement of goods.
Duty-Free: Goods that are exempt from import duties or taxes.
Gate Pass: A document issued to allow goods to leave the premises of a port or warehouse.
Out of Charge (OOC): A status indicating that goods have been cleared by customs and are free to proceed.
Free Trade Agreement (FTA): A pact between countries to reduce or eliminate trade barriers like tariffs and quotas on goods.
Customs Clearance: The process of getting goods through customs by submitting the required paperwork, paying duties, and fulfilling any necessary inspections.
Port of Entry: The location at which goods are imported into a country.
Import License: A document required by certain countries for goods to be imported.
Re-export: The export of goods that were previously imported into a country.
Manifest: A detailed list of the cargo being transported, typically used for customs clearance.
Proforma Invoice: A preliminary invoice sent to the buyer in advance of the actual shipment.
Bonded Warehouse: A warehouse where imported goods can be stored without paying import duties until they are released for sale or export.
Container Freight Station (CFS): A location where cargo is loaded and unloaded from containers.
Customs Duty: A fee levied on imports or exports by a government, typically calculated as a percentage of the goods’ value.
Tariff Code: A unique code that corresponds to a specific type of merchandise under the Harmonized System.
Import Quota: A limit on the quantity of a particular good that can be imported.
Certificate of Origin: A document that certifies where the goods being shipped are produced or manufactured.
Temporary Importation Under Bond (TIB): A system that allows goods to be temporarily imported without paying duties, provided they will be exported again within a set time.
Customs Duty Exemption: A situation in which certain goods or categories of goods are exempt from import duties.
Ex-Works (EXW): An Incoterm indicating that the seller has fulfilled their responsibility when the goods are made available for pickup at their premises.
Incoterms: A set of international trade terms that define the responsibilities of buyers and sellers in global transactions.
Importer of Record (IOR): The party responsible for ensuring that goods imported into a country comply with local laws and regulations.
Exporter of Record (EOR): The party responsible for ensuring that goods exported from a country comply with local laws and regulations.
Cross-Border Compliance: The process of ensuring goods meet the legal requirements for both the exporting and importing countries.
Quota Management: The process of ensuring that import or export limits are respected and managed accordingly.
Customs Inspection: The examination of goods, paperwork, or shipment details by customs authorities to ensure compliance with regulations.
Duty Drawback: A refund of duties paid on imported goods that are later exported.
Import Permit: A license required to import certain restricted goods into a country.
Export Permit: A license required to export certain controlled goods to foreign countries.
Customs Audit: A review by customs authorities of a company’s records and operations to ensure compliance with regulations.
Temporary Import: Goods imported for a limited period and under specific conditions, often without paying full duties.
Customs Bond: A contract between the importer, customs, and a surety company to ensure payment of duties and compliance with customs laws.
Customs Duty Refund: A repayment of customs duties under specific circumstances, such as overpayment or goods returned.
Cargo Manifest: A detailed list of the goods carried on a ship, aircraft, or vehicle, used for customs and safety purposes.
Cleared Goods: Goods that have passed through customs and are authorized for entry into the country.
Import Quota: A limit on the quantity of a specific item that can be imported into a country.
Trade Tariff: A schedule of fees and taxes levied by a government on imports or exports.
Bill of Entry: A document filed with customs to declare the details of goods being imported or exported.
Exemption Certificate: A document that provides proof that an item is exempt from certain taxes or duties under specific circumstances.
Customs Duty Suspension: A temporary suspension of duty payments for certain goods, often to stimulate business or trade.
Reclassification: The act of changing the classification of goods under the Harmonized System, which can affect the duties or taxes applied.
Authorized Economic Operator (AEO): A program that certifies companies as trustworthy and compliant with customs procedures.
Customs Valuation: The process of determining the value of goods for the purpose of calculating duties and taxes.
Pre-arrival Processing: The submission of customs documentation and other requirements before goods arrive at the port of entry.
Customs Hold: A delay imposed by customs authorities while reviewing goods or documentation.
In-bond: Goods that are brought into a country but are not yet cleared by customs.
Temporary Export: Goods that are sent out of the country temporarily, typically for repair, replacement, or return.
Import Duties Calculation: The process of calculating the customs duties payable based on the value, classification, and origin of goods.
Quota License: A license issued to importers allowing them to bring a specified quantity of goods into the country.
Customs Duties Exemption: A policy or program that allows certain goods to enter without being subject to import duties.
Import Duty Rate: The percentage or amount of duty imposed on imported goods.
Clearing Agent: An individual or firm responsible for facilitating the clearance of goods through customs.
Customs Tariff Schedule: A list of all the duty rates and classifications for goods entering or exiting a country.
Bonded Carrier: A company authorized to transport goods under customs control without paying duties until the goods are cleared.
Pre-shipment Inspection: The process of inspecting goods before shipment to ensure they comply with local regulations.
Clearance Fees: Fees charged by customs for processing goods through the clearance process.
Overage Charges: Additional charges that apply when goods are held in a bonded warehouse or port beyond the allowed time.
Shipping Manifest: A detailed list of all goods shipped, including weight, classification, and description.
Import Compliance: The process of ensuring that imported goods meet the customs and regulatory requirements of the destination country.
Customs Seizure: The confiscation of goods by customs authorities for failing to comply with regulations.
Inward Cargo Declaration: A document submitted to customs upon the arrival of goods into a country, detailing the cargo’s specifics.
Import Duty Exemption Certificate: A certificate issued for certain goods exempt from import duties, such as raw materials or machinery for manufacturing.
Post-Clearance Audit: An audit conducted after goods have been cleared through customs to verify compliance with regulations.
Quota Period: The specific time frame during which an importer can bring goods into the country under a quota.
Duty-Free Allowance: The maximum amount of goods an individual can bring into a country without paying import duties.
Trade Facilitation Agreement (TFA): A global initiative designed to simplify and streamline international trade processes.
Customs Declaration Form: The paperwork submitted to customs when importing or exporting goods, providing details like value, description, and origin.
Country of Origin: The country where goods are produced or manufactured, which can affect tariffs and eligibility for trade agreements.
Reimportation: The act of bringing back goods that were previously exported, usually to their original destination.
Licensed Customs Warehouse: A customs-approved facility where goods can be stored without being subject to duty until they are moved or sold.
Direct Export: The act of selling goods directly to a foreign buyer without intermediaries.
Disbursement: The process of paying customs duties, taxes, and fees.
Bonded Area: A designated area where goods can be stored or processed without paying customs duties.
Exempt Goods: Products that are not subject to duties, taxes, or restrictions under certain conditions.
Import Restrictions: Regulations that limit the types or quantities of goods that can be imported into a country.
Customs Invoice: A detailed invoice that is used to declare the value, quantity, and origin of goods being imported.
Customs Broker’s License: A certification that allows an individual or company to act as a customs broker.
Temporary Storage Facility: A location where goods are kept for a short time before being processed through customs.
Re-exportation Certificate: A document issued for goods that are exported out of the country after previously being imported.
Freight Forwarder: A company that arranges the transportation and logistics of goods for importers or exporters.
Ocean Freight: The shipping of goods by sea.
Import Control: The enforcement of regulations that limit or restrict the importation of specific goods.
Interchangeable Goods: Goods that can be easily substituted or replaced with other goods of the same category.
Customs Classification: The categorization of goods based on the Harmonized System, which helps determine the applicable duties.
Shipment Tracking: The process of monitoring the progress of goods as they move through the supply chain.
Freight Collect: A shipping term where the recipient pays the freight charges upon receiving the goods.
Freight Prepaid: A shipping term where the sender or exporter pays for the freight charges before shipment.
Proof of Delivery (POD): A document confirming that goods have been delivered to the designated party.
Customs Bonded Trucking: Transportation of goods under customs bond, ensuring the goods are transported without paying duties until customs clearance.
Cargo Terminal: A facility at the airport or seaport where cargo is processed, stored, and loaded/unloaded.
Customs Suspension: A temporary suspension of certain customs procedures for specific goods or circumstances.
Country of Destination: The country where goods are being sent, which determines the applicable import regulations.
Tare Weight: The weight of packaging or containers that does not include the weight of the actual goods.
Electronic Data Interchange (EDI): The exchange of business documents between organizations in a standardized electronic format for customs processing.
Automated Manifest System (AMS): An electronic system used by U.S. Customs to collect data on incoming shipments and their cargo.
Ad Valorem: A tax or duty that is calculated based on the value of the goods.
Air Waybill (AWB): A document that serves as a receipt for goods and a contract of carriage for air transport.
Anti-dumping Duty: A tariff imposed on imports that are priced below fair market value, usually to prevent unfair competition.
At the Port of Discharge: The location at which goods are unloaded from the vessel or aircraft.
Automatic License: A type of import license that is automatically granted for certain goods with no special conditions or restrictions.
Backhaul: The return trip of a transportation vehicle (ship, truck, etc.) after delivering its primary load, often with goods for return or further shipment.
Bonded Carrier: A transport company that is authorized to carry goods under customs bond.
Bonded Transport: The transportation of goods under customs control until they are cleared through customs.
Breakbulk Cargo: Cargo that is transported in loose form, rather than in containers, such as bags, boxes, and crates.
Cabotage: The transport of goods between two places in the same country, but done by a foreign company.
Carnet: An international customs document that allows goods to be temporarily imported into a country without paying duties.
Centralized Clearance: A process allowing an importer to clear goods at any port of entry, even if they are entering through a different port.
Certificate of Compliance: A document proving that goods meet the regulatory standards of the importing country.
Certificate of Free Sale: A document verifying that a product is sold freely in the country of origin and is available for export.
CIF (Cost, Insurance, Freight): An Incoterm where the seller pays for the cost of goods, insurance, and freight to the port of destination.
CITES (Convention on International Trade in Endangered Species): An international agreement aimed at ensuring that international trade does not threaten the survival of species.
Commercial Invoice: A detailed invoice from the seller to the buyer that includes information such as price, quantity, and description of goods.
Compensatory Duty: A type of import duty levied to counterbalance subsidies provided by exporting countries on their goods.
Consignee: The person or company to whom goods are being shipped, typically the recipient in a trade transaction.
Consignment: The process of sending goods to an agent or intermediary, who will sell or distribute them on behalf of the owner.
Consular Invoice: A document certified by the consulate of the importing country that verifies the value and origin of goods.
Container Yard (CY): A designated area in the port where containers are stored before and after shipment.
Containerization: The practice of using large, standardized containers to store and transport goods, facilitating easier loading and unloading.
Controlled Goods: Items that are subject to specific import restrictions or controls due to reasons like safety, security, or environmental protection.
Cross-Docking: A logistics process where goods are unloaded from one mode of transportation and immediately reloaded onto another mode without being stored.
Customs-Trade Partnership Against Terrorism (C-TPAT): A voluntary program aimed at strengthening international supply chains and U.S. border security.
Declaration of Value: A statement of the value of goods being imported or exported, used for customs valuation.
Delivered Duty Paid (DDP): An Incoterm where the seller assumes all responsibilities for shipping, duties, and delivery to the destination.
Delivered at Place (DAP): An Incoterm where the seller delivers the goods to a specified place, with the buyer paying for import duties.
Deferment Account: An account used to delay the payment of customs duties, allowing businesses to pay them at a later time.
Demurrage: A charge imposed when a container or cargo is not picked up from a port or terminal within the allotted time.
Destination Port: The port at which goods are unloaded and processed for delivery to the final recipient.
Direct Shipment: Goods that are sent directly from the exporter to the importer, without passing through an intermediary.
Distilled Spirits: Alcoholic beverages that have been processed through distillation, often subject to higher duties.
Duty-Free Shop: A retail store at international airports or borders where travelers can buy goods without paying certain duties or taxes.
Duty-Drawback Program: A refund program where duties paid on imports are refunded if the goods are exported again.
Dual-Use Goods: Items that can be used for both civilian and military applications and are subject to export control regulations.
Entry Summary: A detailed summary of the goods being imported, used by customs to assess the appropriate duties and taxes.
Export Control: Regulations governing the export of certain goods, such as technology or military items, that are subject to restrictions.
Export License: A permit required for the export of certain goods, often for security, economic, or policy reasons.
Ex-Ship (X-Ship): An Incoterm where the seller’s obligation is to deliver goods at the port of discharge, but the buyer assumes responsibility for all costs once goods are unloaded.
Examine: To inspect or assess goods to verify their nature, origin, and compliance with regulations.
Expatriate Duties: Duties or taxes that apply to goods brought into a country temporarily by a non-resident.
Export Declaration: A statement filed by the exporter to provide customs with information about the goods leaving the country.
Exclusion List: A list of items or products that are not allowed for import or export due to various regulations.
External Tariff: A tariff that applies to imported goods from outside a customs union or free trade area.
FCL (Full Container Load): A shipping term where the entire container is filled with goods from one consignee.
FEMA (Foreign Exchange Management Act): A law governing foreign exchange transactions in India, including customs-related activities.
Ferroalloys: A category of alloys of iron with other elements, often subject to specific tariffs.
Foreign Trade Zone (FTZ): A designated area within a country where goods can be imported, processed, and exported without being subject to customs duties.
Freight Forwarding: The process of arranging the transportation of goods on behalf of a business or individual.
FTA (Free Trade Area): A region where countries have agreed to eliminate or reduce barriers to trade between them, such as tariffs or quotas.
Free Alongside Ship (FAS): An Incoterm where the seller’s responsibility is to deliver the goods alongside the ship, and the buyer takes responsibility for loading and shipping.
Free on Board (FOB): An Incoterm where the seller’s responsibility ends when goods are delivered aboard the vessel at the port of departure.
Free Trade Area (FTA): A zone where there are no tariffs or trade barriers between member countries.
Freight Prepaid: A shipping term indicating the seller has paid for the freight charges up to the destination.
Freight Collect: A shipping term where the buyer is responsible for paying the freight charges.
Generalized System of Preferences (GSP): A preferential tariff system that provides reduced duty rates for imports from developing countries.
Global Positioning System (GPS): A satellite-based navigation system used for tracking shipments during transport.
Gross Weight: The total weight of goods, including packaging and containers.
Guarantee: A commitment made by a party (such as an importer) to fulfill customs obligations, often in the form of a customs bond.
Hague Rules: A set of international rules governing the carriage of goods by sea.
Harbor Charges: Fees associated with the use of port facilities, including docking, loading, and unloading.
Handling Charges: Fees charged for handling goods, including loading, unloading, and processing shipments.
House Bill of Lading: A bill of lading issued by a freight forwarder or non-vessel-operating common carrier (NVOCC) for goods being shipped.
IATA (International Air Transport Association): An international organization that represents airlines and sets standards for air transport.
Import Control: Regulations and procedures used to restrict or limit the importation of certain goods into a country.
Import Quota: A set limit on the quantity of a specific product that can be imported into a country.
In-Bond Entry: The entry of goods into a customs-controlled area where duties and taxes are deferred.
IncoTerms: International commercial terms used to define the responsibilities and costs associated with the shipping and delivery of goods.
Indirect Tax: Taxes that are not directly paid to the government by individuals, but rather collected through goods and services (e.g., VAT).
Inspection Fees: Fees charged by customs or other authorities for inspecting goods before they are cleared.
International Commercial Terms (Incoterms): A set of standard trade terms that define the responsibilities of buyers and sellers in international transactions.
International Trade Compliance: Ensuring that goods comply with the trade laws, regulations, and standards of the countries involved.
Inspection Certificate: A document confirming that goods have been inspected and meet the required standards.
Intrastat: A system used in the European Union to collect statistics on the movement of goods between member states.
Landing Charges: Fees related to unloading goods from a vessel, typically assessed at the port of entry.
Land Border Crossing: A customs facility at a land border where goods are checked and processed.
Landed Cost: The total cost of goods, including price, shipping, handling, insurance, and import duties.
LCL (Less than Container Load): A shipment that does not fill a full container, where the goods of several consignors are grouped together.
Letter of Credit (L/C): A letter from a bank guaranteeing payment for goods or services, typically used in international trade transactions.
License Control: Regulations governing the issuance of licenses for the import and export of certain goods.
Low Value Consignment Relief (LVCR): A customs procedure that allows the import of low-value goods without applying duties or taxes.
Manifest List: A detailed inventory of the goods listed on a manifest for customs and logistical purposes.
Material Safety Data Sheet (MSDS): A document that provides information on the safety and handling of hazardous materials.
Minimum Value: The lowest value allowed for goods for customs purposes, below which duties and taxes may not be levied.
Multimodal Transport: The movement of goods using more than one mode of transport (e.g., truck, ship, and rail).
NVOCC (Non-Vessel Operating Common Carrier): A company that arranges for the transportation of goods but does not operate the vessels themselves.
Ocean Freight Prepaid (OFP): A shipping term where the seller pays for the ocean freight charges.
Original Invoice: The official bill issued by the seller for the sale of goods, typically used for customs clearance.
Overseas Trading: The process of conducting international business and trading between countries.
Packing List: A detailed document listing the contents of a shipment, often including descriptions, quantities, and packaging.
Panama Canal Fees: Charges assessed for ships passing through the Panama Canal, typically based on cargo weight or type.
Prohibited Goods: Items that are banned from import or export, often due to safety, security, or regulatory concerns.
Quota Arrangement: A system that establishes limits on the quantity of certain goods that can be imported during a set period.
Reimbursement of Duties: The refund or repayment of customs duties under specific conditions, such as errors or exemptions.
Shipping Instructions: Detailed directions provided by the shipper regarding how the goods should be handled and delivered.
Single Administrative Document (SAD): A document used for customs declarations in the European Union to facilitate international trade.
Sanctions: Legal restrictions or penalties imposed by a country or international organization to restrict trade or economic activity with specific countries or entities.
Smuggling: The illegal movement of goods across borders to avoid customs duties, taxes, or regulations.
Special Economic Zone (SEZ): A designated area in a country that offers special economic advantages, such as reduced taxes or duties, to attract foreign investment.
Standard International Trade Classification (SITC): A system used by the United Nations to categorize products for international trade statistics.
Statistical Value: The value used by customs authorities to determine the statistical classification of goods, often excluding transportation costs or other additional expenses.
Shipper: The party responsible for preparing and sending goods, typically the exporter or manufacturer.
Shipper’s Letter of Instruction (SLI): A document from the shipper to the freight forwarder or carrier, providing instructions for shipping and handling the goods.
Surface Freight: The transportation of goods over land, typically by truck or rail.
Surtax: An additional tax or duty that is imposed on imported goods over and above the standard duty.
Suspension of Duties: A temporary suspension of duties on certain goods, often for strategic purposes like fostering international trade or improving market conditions.
Tariff Rate Quota (TRQ): A system where a lower tariff is applied to a specified quantity of imports, and a higher tariff is applied to imports exceeding that quantity.
Third-Party Logistics (3PL): A service provider that manages all or part of the logistics functions for a business, including transportation, warehousing, and customs clearance.
Terminal Handling Charges (THC): Fees charged for the handling of cargo at the port terminal, including loading and unloading containers.
Trade Barriers: Any regulations or policies that restrict international trade, such as tariffs, quotas, or licensing requirements.
Trade Deficit: A situation where a country imports more goods and services than it exports.
Trade Surplus: A situation where a country exports more goods and services than it imports.
Transporter: A person or company responsible for physically moving goods from one location to another.
Unmanifested Cargo: Cargo that is not included in the shipping manifest, often leading to complications with customs clearance.
Underbond: Goods that are stored or transported under customs control without paying duties until cleared by customs.
Undervaluation: The illegal practice of declaring a lower value for goods to reduce the amount of customs duties or taxes due.
Unit Value: The price per unit of a product, often used for customs valuation and trade statistics.
Value Added Tax (VAT): A consumption tax placed on goods and services at each stage of production or distribution.
Valuation for Customs: The process of determining the value of goods for the purpose of calculating customs duties, based on factors like transaction price, origin, and cost of transportation.
Virtual Customs Declaration: An online submission of documents or data for customs clearance, using electronic systems like the Customs Automated Data Processing (CADP).
Warehouse Receipt: A document that serves as proof of ownership or entitlement to goods stored in a warehouse.
Warehousing: The act of storing goods in a facility, either for a short or long period, before they are cleared through customs or distributed.
Waterborne Trade: The transportation of goods via sea or inland waterways.
World Trade Organization (WTO): An international organization that regulates global trade and ensures trade flows as smoothly, predictably, and freely as possible.
World Customs Organization (WCO): An independent intergovernmental organization responsible for setting standards for customs practices and facilitating international cooperation in trade.
X-ray Inspection: A method used by customs authorities to inspect the contents of shipping containers, packages, or cargo for prohibited items without opening them.
Zoning Regulations: Local or national rules that govern how land is used, including for customs purposes like warehousing, port facilities, and trade zones.
Zone of In-bond: A customs procedure allowing goods to be imported into a special zone under customs control, without duties being paid until they are moved out of the zone.
Zero-rated Goods: Goods that are subject to a 0% VAT rate, meaning no VAT is charged at the time of sale.
Zonal Classification: The categorization of goods based on their geographical region or customs zone, used in trade agreements or tariff schedules.
Zipper Merging: A method of managing customs entry lanes where multiple lanes converge into a single lane, often to improve efficiency and reduce delays.
Shipping Bill: A document that provides detailed information about the goods being exported, used for customs clearance at the port.
Simplified Customs Procedure: A process that allows for quicker customs clearance by streamlining documentation or reducing the number of requirements for certain shipments.
Secondary Inspection: An additional inspection conducted by customs authorities when goods raise concerns during primary screening.
Special Tariff Treatment: A reduced tariff rate applied to certain goods due to agreements like free trade agreements or preferential trade status.
Sealed Container: A container that has been secured with a tamper-evident seal, often to prevent unauthorized access during transport.
Security Filing: The submission of required documents or data to customs authorities before the shipment arrives, to ensure security and compliance.
Self-Certification: A system where exporters can declare the origin or other attributes of goods themselves, without third-party verification.
Sales Tax: A tax levied on the sale of goods and services, often used as a form of indirect taxation in many countries.
Re-exportation Certificate: A document that verifies goods that were previously imported are being re-exported without having been altered.
Reimbursement of Customs Fees: The process of refunding fees paid for customs services or goods that were later found to be exempt or in error.
Refused Goods: Goods that have been rejected by customs authorities due to non-compliance with regulations or documentation errors.
Quota Rent: A fee paid for the privilege of importing goods within a specified quota, often paid by the importer to the government or trade authority.
Prohibited Export: Goods that cannot be legally exported due to restrictions imposed by national security, environmental concerns, or international agreements.
Preferential Tariffs: Lower tariffs that apply to goods from certain countries or regions that have trade agreements or preferential trade status.
Port of Departure: The location from which goods are shipped out of a country.
Non-Tariff Barriers (NTBs): Non-tax measures such as quotas, import licensing, or standards that restrict trade.
Non-Commercial Goods: Goods that are not intended for sale, such as personal items, gifts, or samples.
Non-Resident Importer: A person or entity that imports goods into a country but does not reside or have a permanent establishment there.
Newspaper Tariff: A special, reduced tariff applied to newspapers, often exempt from regular import duties.
Net Weight: The weight of the goods themselves, excluding packaging or containers.
Nuclear Goods: Goods related to nuclear materials or technology, often subject to strict export controls and international agreements.
Minimal Value Goods: Goods with a value so low that they are exempt from customs duties or taxes under certain regulations.
Multiple Origin Goods: Goods that are sourced from more than one country and require a complex origin declaration for customs clearance.
Manually Processed Goods: Goods that require manual inspection or documentation by customs authorities due to special handling requirements.
Local Content: The proportion of a product that is made from local (domestic) materials, often used to qualify for preferential tariffs under trade agreements.
Local Delivery Charges: Fees applied for the delivery of goods from a port to the final destination within the country.
Labelling Requirements: Regulations that specify how goods should be labeled for importation, often concerning product content, country of origin, and other information.
Key Performance Indicators (KPIs): Metrics used by customs authorities or logistics providers to measure the efficiency and effectiveness of trade operations.
Key Customs Code: The identification number or code used for a particular product in customs declarations, based on the Harmonized System.
In-Bond Movement: The transport of goods under customs control from one customs facility or location to another without duties being paid.
Government Procurement: The process by which governments purchase goods, services, and construction from private companies, often governed by strict international trade agreements.
Foreign Exchange Controls: Regulations that govern the exchange of foreign currency, which may affect the ability to pay for imports or repatriate export revenues.
Express Consignment Clearance: A fast-tracked customs process for goods that are being shipped quickly and are typically low-value or time-sensitive.
Entry Summary Declaration (ENS): A document submitted to customs detailing the goods entering the country, typically required before the arrival of goods.
End-Use Declaration: A statement made by the importer declaring the intended use of goods, especially for goods subject to specific restrictions.
Endorsement: A stamp or statement added to shipping documents indicating approval, certification, or a special condition.
Alternative Trade Methods: Non-traditional ways of conducting trade, such as barter or countertrade, where goods or services are exchanged directly instead of using money.
Anti-smuggling Unit: A specialized unit within customs or law enforcement agencies focused on detecting and preventing the illegal movement of goods across borders.
Authorized Economic Operator (AEO): A company that has been certified by customs authorities as complying with international security and safety standards, typically granting faster clearance.
Automated Clearing House (ACH): A network used for processing payments, including customs duty payments, via electronic transfers.
Assistance to Exporters: Various government programs or incentives provided to businesses to support and promote exports, such as grants, subsidies, or advisory services.
Bonded Warehouse: A secure facility where imported goods can be stored without the payment of customs duties or taxes until they are cleared or re-exported.
Buffer Stock: A reserve of goods held by customs or government authorities to stabilize supply and demand in critical goods sectors.
Bulk Cargo: Unpacked goods that are transported in large quantities, such as liquids or grains, often carried in bulk carriers.
Carnet TIR: A transit document used for transporting goods across countries that are part of the TIR (Transports Internationaux Routiers) system, without customs controls.
Certificate of Authenticity: A document verifying the genuineness of goods, often required for art, antiques, or luxury items for export or import.
Certified Exporter: An exporter that has been approved or certified by the relevant authority, often granting them certain privileges or advantages in international trade.
Claim for Refund: A formal request submitted to customs or tax authorities for the return of excess duties or taxes paid on goods that were imported.
Customs Broker: A licensed professional or company responsible for helping importers and exporters comply with all customs regulations and procedures.
Customs Declaration Form (CDF): A document submitted to customs by the importer or exporter that provides details about the goods being shipped, their value, origin, and destination.
Customs Inspection Certificate: A certificate issued after goods have been inspected by customs to ensure they comply with all regulations and standards.
Customs Bonded Truck: A truck used to transport goods under a customs bond, ensuring that duties will be paid once the goods reach their final destination.
Customs Duty Evasion: The illegal act of circumventing the payment of customs duties through fraudulent declarations or smuggling.
Container Freight Station (CFS): A facility where containers are packed or unpacked, and cargo is consolidated before being loaded onto a vessel or transport.
Country of Export: The country from which goods are being shipped or exported.
Country of Origin Marking: The requirement for goods to be marked with their country of origin, as mandated by customs or trade regulations.
Cross-Border Trade: Trade activities that involve goods being moved across national borders between two or more countries.
Customs Valuation Agreement (CVA): An international agreement, typically within the World Trade Organization (WTO), that standardizes how the value of goods for customs purposes should be calculated.
Cumulative Customs Duty: A customs duty that is applied on top of other charges, including excise taxes or additional tariffs.
Customs Paperless Procedure: A system where customs documentation is submitted electronically, eliminating the need for paper forms, improving efficiency and reducing errors.
Customs Pre-clearance: The process of submitting documents and receiving customs clearance before the physical arrival of goods at a port.
Customs Seal: A tamper-evident device used by customs authorities to ensure the integrity of goods in transit or in bonded warehouses.
Customs Value: The total value assigned to imported goods by customs authorities, typically based on the transaction value, including costs like insurance, freight, and packing.
Customs Warrants: Legal documents that authorize customs authorities to search, seize, or detain goods suspected of being in violation of customs laws.
Dangerous Goods Declaration: A formal declaration of hazardous materials being transported, which is required for shipping dangerous goods in international trade.
Deemed Export: The act of transferring goods or technology to a foreign entity within the same country, which can be subject to export control regulations.
Destination Control Statement: A statement on shipping documents that restricts the destination of goods, typically used for items with export control restrictions.
Documentary Credit (DC): A written commitment issued by a bank on behalf of the buyer, guaranteeing payment to the seller if the seller complies with the terms of the contract.
Dual-Use Items: Goods that have both civilian and military applications, subject to stricter export controls.
Duty Exemption: A policy or program that allows goods to be imported without being subject to customs duties, typically under special circumstances such as humanitarian aid or research.
Entry Point: The location where goods officially enter a country, and where customs clearance procedures begin.
Entry Under Bond: A customs procedure where goods are entered into a country under a bond or guarantee, allowing importation before full payment of duties or taxes.
Entry of Goods: The official process of registering goods with customs authorities when they arrive at a port of entry for clearance.
Export Credit Insurance: An insurance policy that protects exporters against the risk of non-payment by foreign buyers due to insolvency or other reasons.
Extraterritorial Jurisdiction: The ability of a country to enforce its customs laws on goods or transactions that occur outside its borders, such as extraterritorial sanctions or regulations.
Exemption Certificate: A certificate issued by customs or government authorities allowing goods to be imported or exported without paying duties or taxes due to specific exemptions.
Exit Manifest: A document listing the goods that are being exported from a country, often submitted to customs authorities for clearance.
Free on Rail (FOR): An Incoterm where the seller delivers goods to a railway station for shipment, and the buyer assumes responsibility for transport costs thereafter.
Foreign Trade Regulations (FTR): Regulations in the United States that govern the export of goods and the filing of export information with the government.
Forwarding Agent: A company or individual that arranges the transportation and shipping of goods for importers or exporters.
Foreign Exchange Risk: The risk of losing value in transactions due to fluctuations in currency exchange rates, often affecting international trade costs.
Freight Charges: The cost associated with transporting goods, which may include charges for loading, unloading, handling, and shipping.
Freight Forwarder’s Liability: The legal responsibility of a freight forwarder for goods in transit, including damages or loss during shipping.
Free Trade Agreement (FTA): An agreement between countries to reduce or eliminate barriers to trade, including tariffs and quotas.
Fumigation Certificate: A certificate stating that goods have undergone fumigation to eliminate pests or diseases, commonly required for agricultural products.
Full Export Declaration: A comprehensive declaration made by the exporter detailing the goods being exported, including their value, classification, and intended destination.
Functional Goods: Goods that are designed for a specific function or purpose and are subject to different import/export regulations than non-functional or luxury goods.
General Agreement on Tariffs and Trade (GATT): A legal framework established after World War II to promote international trade by reducing tariffs and other trade barriers (predecessor to the WTO).
Generalized System of Preferences (GSP): A system that allows developed countries to offer lower or duty-free access to certain products from developing countries.
Gross Domestic Product (GDP): The total value of goods and services produced within a country’s borders, often used as an economic indicator.
Goods in Transit: Products that are in the process of being transported from one place to another, but have not yet arrived at their final destination.
Green Channel: A customs clearance process where goods can pass without being subjected to inspection, typically for goods that are low-risk or pre-approved.
Global Trade Management (GTM): The process and tools used by companies to manage the complexities of international trade, including logistics, compliance, and documentation.
Goods Receipt: The formal acknowledgment that goods have arrived at a warehouse or port and are ready for further processing or customs clearance.
General Tariff: The standard tariff applied to imported goods, without special conditions or preferences.
Gross Weight: The weight of the goods including packaging, containers, and any other additional items.
Harbor Dues: Charges levied on ships for docking or using port facilities.
Hazardous Materials: Substances or items that are dangerous or potentially harmful, and which require special handling, transport, and documentation.
Harmonized System (HS) Code: An internationally standardized system for classifying traded products, used by customs authorities to determine tariffs and quotas.
Holding Company: A company that owns controlling interests in other companies but does not produce goods or services itself.
Intermodal Transport: The use of two or more modes of transportation (e.g., rail, truck, and sea) for the same shipment.
Import Declaration: A formal statement submitted to customs authorities declaring the arrival of goods into the country for entry.
Import Permit: A license or authorization required to bring goods into a country, typically issued by the relevant government authority.
Inward Processing Relief: A customs procedure allowing businesses to import goods without paying customs duties, provided the goods are used in manufacturing or processing before being exported.
Intellectual Property (IP): Legal rights protecting creations of the mind, such as patents, trademarks, and copyrights, which can be important in customs disputes over counterfeit goods.
Invoice Declaration: A declaration made by the seller or exporter that the invoice for goods being exported is accurate and truthful.
Importer of Record (IOR): The entity responsible for ensuring that imported goods comply with local laws and regulations, including customs declarations, duties, and taxes.
Import Duty: A tax levied by a government on goods brought into a country, calculated based on the value or weight of the goods.
Import Quota: A limit on the quantity of a specific product that can be imported into a country during a set period.
International Commercial Terms (Incoterms): A series of pre-defined commercial terms published by the International Chamber of Commerce (ICC), outlining the responsibilities of buyers and sellers in international transactions.
Inspection Certificate: A document provided by a third-party inspector that confirms that goods meet specified standards or regulations before being shipped or cleared by customs.
International Freight: The transportation of goods across international borders, typically involving shipping by sea, air, or land.
International Trade Compliance: The adherence to all relevant laws, regulations, and trade agreements governing the import and export of goods.
Import License: An official authorization required for the importation of certain goods into a country, often based on national security or economic policy concerns.
Inventory Control: The process of managing and tracking goods and materials in storage, ensuring proper stock levels for customs, production, and distribution.
Issuing Bank: The bank that issues a letter of credit on behalf of a buyer in a trade transaction, guaranteeing payment to the seller under specified conditions.
Key Exporter: A company or entity that is a significant or regular exporter of goods from a specific region or country.
Landed Cost: The total cost of a product once it has arrived at the buyer’s location, including the cost of shipping, insurance, customs duties, taxes, and other fees.
Liberalized Trade: The reduction or removal of trade barriers, such as tariffs, import quotas, and licensing requirements, typically through trade agreements.
Letter of Credit (LC): A financial document issued by a bank that guarantees payment to a seller for goods or services provided to a buyer, subject to terms and conditions.
Letter of Indemnity (LOI): A document issued by one party to another, typically in shipping, stating that the issuer will assume responsibility for any loss or damage that may occur in specific circumstances.
Lift-on/Lift-off (LOLO): A type of cargo handling method in which cargo is loaded and unloaded using cranes that lift the goods on and off the vessel.
Licensed Customs Broker: A professional licensed by government authorities to act on behalf of importers and exporters, helping them comply with all customs regulations.
Low-value Goods: Goods with a relatively low monetary value, often exempt from customs duties or taxes, depending on the country’s regulations.
Management of Trade: The process of overseeing and controlling all aspects of the flow of goods and services across international borders, including logistics, compliance, and documentation.
Manifest: A comprehensive list of cargo being shipped on a vessel, aircraft, or vehicle, detailing the cargo’s origin, destination, quantity, and other relevant information.
Marking and Labeling: The process of applying labels or markings to goods for identification, which may include information such as the product’s origin, handling instructions, or safety warnings.
Minimum Order Quantity (MOQ): The smallest quantity of goods that a seller is willing to sell to a buyer, often used in international trade to set thresholds for orders.
Minimum Value Declaration: A simplified customs declaration for goods valued below a certain threshold, which may allow for faster clearance with fewer required documents.
Non-Preferential Tariffs: Tariffs applied to imported goods that do not benefit from preferential treatment under any trade agreements or bilateral accords.
On-board Bill of Lading: A document issued by the carrier that acknowledges the shipment of goods on a vessel, used as proof of ownership and a contract for transport.
Origin Declaration: A statement included on shipping documents that verifies the country of origin of the goods being imported or exported.
Overland Transport: The transportation of goods by road or rail, typically involving the movement of goods across land-based routes from one country to another.
Overseas Market Development: Efforts by companies to explore, enter, or expand into foreign markets for their products, often involving international trade activities.
Packing List: A document that itemizes the contents of a shipment, including the number and types of goods, used by customs for inspection and clearance.
Pre-shipment Inspection: An inspection of goods conducted before shipment, often required by the importing country to ensure compliance with product standards or regulations.
Principal Customs Officer: The senior customs official responsible for overseeing customs procedures and regulations at a specific customs point or border entry.
Processing Fee: A charge imposed by customs authorities or other government bodies for processing certain trade-related documents or transactions.
Prohibited Goods: Goods that are not allowed to be imported or exported due to legal, health, safety, or environmental restrictions.
Public Customs Warehousing: A warehouse operated by customs authorities or approved private parties where goods can be stored without the payment of customs duties or taxes until cleared.
Quota Restrictions: Limits placed on the quantity of a specific good that can be imported or exported during a specified period, often used to regulate trade in sensitive sectors.
Re-exportation: The process of exporting goods that were previously imported into a country, either in the same condition or after undergoing processing.
Returnable Containers: Containers that can be reused for shipping goods back and forth across borders, which can reduce costs and environmental impact.
Risk Management in Customs: The practice of identifying, assessing, and minimizing the risk of non-compliance or fraud in customs operations, often by implementing automated systems or audits.
Sanctioned Country: A country that is subject to trade restrictions, embargoes, or sanctions imposed by other countries or international organizations due to political, human rights, or security concerns.
Securities Declaration: A declaration that details the types and amounts of securities, such as bonds or negotiable instruments, being imported or exported.
Self-Certification of Origin: A process where exporters declare the origin of their goods without needing to obtain a certificate from a government authority, often used in preferential trade agreements.
Semi-Trailer: A type of truck trailer that is designed to be attached to a tractor unit for transporting goods, commonly used in road transport.
Short-shipment: A situation in which the amount of goods delivered is less than what was originally ordered or shipped, requiring adjustments in customs documentation.
Simplified Customs Declaration: A reduced set of customs documents or processes available for smaller shipments or low-risk goods, speeding up the customs clearance process.
Single Administrative Document (SAD): A standard customs form used for declaring goods to customs authorities, commonly used in the European Union and other regions.
Shipping Instructions: Instructions given by the shipper to the carrier or freight forwarder, outlining the details of how goods should be handled, packed, and delivered.
Special Tariff Treatment: A reduced or modified tariff rate for specific goods, often granted under trade agreements or programs such as the Generalized System of Preferences (GSP).
Statutory Value: The minimum value assigned to goods for customs purposes, especially when goods are undervalued for tax or tariff purposes.
Supply Chain Compliance: The adherence to all relevant laws, regulations, and standards throughout the supply chain, including customs requirements, safety standards, and environmental regulations.
Surveyed Cargo: Cargo that has been inspected by an authorized surveyor, often required for high-value goods or goods being transported across long distances.
Tariff Binding: A formal process where an importer or exporter requests a ruling from customs authorities on the classification of goods for tariff purposes.
Tariff Schedule: A list of tariffs or duties applied to various types of goods, usually organized by product category or classification system.
Temporary Importation: The importation of goods into a country for a temporary period, under a special customs procedure that allows goods to be imported without duties, provided they are re-exported.
Tax on Imports: A tax applied by a country to goods brought into the country, which may be in addition to customs duties.
Transit Procedure: A customs procedure where goods are moved through a country without being cleared for import, typically under a customs bond, while en route to another destination.
Transshipment: The transfer of goods from one mode of transport to another during transit, typically occurring at a port or airport, before reaching their final destination.
Undervalued Goods: Goods that are declared at a price lower than their actual value to reduce the customs duties or taxes owed.
Valuation Method: The method used by customs authorities to determine the value of imported goods, typically based on the transaction value or alternative valuation criteria.
Voluntary Export Restraint (VER): An agreement where an exporting country agrees to limit the quantity of goods exported to another country, often to avoid trade disputes or tariffs.
Warehouse Entry: The formal process of submitting goods to be stored in a customs-approved warehouse, typically without immediate payment of duties or taxes.
Accredited Exporter: An exporter who has been certified by customs or a government body, allowing them to make simplified declarations or benefit from specific trade programs.
Ad Valorem Duty: A customs duty that is calculated as a percentage of the value of the imported goods, as opposed to a fixed rate per unit of goods.
Advanced Ruling: A binding decision made by customs authorities on the classification, origin, or valuation of goods, issued before the goods are imported.
Advance Payment: A payment made by the buyer to the seller before goods are shipped, often required in international trade as a form of security.
Agency Fee: A fee charged by a customs broker or other intermediary for providing services such as clearing goods through customs or organizing logistics.
Amendment of Bill of Lading: A change made to the terms of a bill of lading, such as updating consignee details or modifying shipment instructions.
Anti-Dumping Duty: A tariff imposed on foreign goods that are priced below their normal value, typically to protect domestic industries from unfair competition.
Automated Export System (AES): A U.S. system used to electronically file export information to U.S. Customs, required for most shipments leaving the country.
Authorized Representative: A person or company designated to act on behalf of another in trade or customs matters, such as handling documentation or making declarations.
Barge Shipping: A method of transporting goods via flat-bottomed boats or barges, commonly used for inland waterway transport or short-sea shipping.
Bearer Instruments: Financial documents (such as checks, bonds, or promissory notes) that are payable to the holder rather than a specific individual or entity.
Bill of Sight: A preliminary customs document that lists goods being imported but does not contain full information for classification or valuation.
Bonded Carrier: A transport company or vehicle that is authorized by customs to move goods under a customs bond, allowing deferred payment of duties until the goods reach their final destination.
Bonded Entry: The process of importing goods under a customs bond, allowing goods to be imported without paying duties, taxes, or fees until they are released for domestic consumption.
Bonded Transportation: A shipping arrangement in which goods are transported under customs control, with duties and taxes deferred until the goods reach their final destination or are cleared through customs.
Bottom-Up Classification: A method used in customs classification where specific product details are examined to determine the correct classification, rather than starting from a broad category.
Bulk Freight: Goods transported without packaging, typically in large quantities or volumes, such as bulk chemicals, liquids, or grains.
Bulk Shipping: The transport of goods in large quantities without packaging, often done by sea or rail, typically for commodities like coal, grain, or oil.
Cargo Manifest: A detailed list of all cargo being transported on a vessel, truck, or aircraft, required by customs for clearance and inspection.
Carrier’s Liability: The legal responsibility of the carrier for loss, damage, or delay of goods during transport, subject to specific terms outlined in the shipping contract.
Cargo Screening: The process of inspecting cargo for prohibited items or compliance with regulations, which may include physical inspection or X-ray scanning.
Certificate of Inspection: A document confirming that goods have been inspected and meet the required standards for shipping, often necessary for goods like perishables or hazardous materials.
Certificate of Origin: A document that certifies the country in which the goods were produced or manufactured, often used to determine tariff treatment under trade agreements.
Clearance Agent: A professional or company responsible for clearing goods through customs, ensuring all documentation and fees are in order for release.
Clearing Instruction: A set of instructions provided to a customs broker or clearing agent, detailing how goods should be cleared through customs.
Commercial Invoice: An important document in international trade that provides details of the transaction, such as the value, description, and terms of sale of the goods.
Common Customs Tariff: A set of tariff rates that apply to goods imported into a specific customs territory, usually within a group of countries such as the European Union.
Common Carrier: A transport company that offers services to the general public for the transportation of goods, subject to specific regulations and legal requirements.
Compliance Audit: A review of an organization’s customs compliance practices to ensure adherence to laws and regulations, often conducted by customs authorities or external auditors.
Consolidated Shipment: A shipment that combines multiple smaller shipments from different consignors into one larger shipment, often to reduce costs.
Consignment: Goods sent by a consignor (typically a seller) to a consignee (buyer), who is responsible for selling the goods on behalf of the consignor.
Consignee: The individual or company to whom goods are shipped, typically the recipient in the case of international shipments.
Consignor: The sender or shipper of goods in a trade transaction, typically the seller or manufacturer of the goods.
Containerization: The practice of packing goods into standardized shipping containers, facilitating easier loading, unloading, and handling in transport.
Contingent Tariff: A tariff that is applied conditionally, such as based on the final classification or origin of goods, or the fulfillment of specific criteria.
Continuous Bond: A single bond posted by an importer or exporter that covers multiple shipments over a defined period, reducing the need for separate bonds for each shipment.
Customs Attache: A customs officer or representative who is stationed at an embassy or consulate to handle trade-related matters and ensure compliance with national regulations.
Customs Clearance Process: The series of steps involved in obtaining approval from customs authorities to allow goods to enter or leave a country, including documentation, inspection, and payment of duties.
Customs Duty Deferral: A practice where payment of customs duties is postponed until goods are sold, re-exported, or used in further production.
Customs Duty Drawback: A refund of duties paid on imported goods that are subsequently exported or used in manufacturing, effectively reducing the overall cost of goods.
Customs Entry Number: A unique reference number assigned to a customs declaration, used to track and identify shipments during the clearance process.
Customs House Broker: A licensed professional who handles the documentation, tariff classification, and payments necessary to clear goods through customs.
Customs Inspection: The process by which customs authorities examine goods to verify compliance with import/export regulations and ensure the correct duties and taxes are paid.
Customs Modernization: The process of updating customs procedures and technologies to improve efficiency, reduce delays, and enhance compliance.
Customs Valuation Methods: The approaches used by customs authorities to determine the value of imported goods, which may include transaction value, deductive value, computed value, or fallback value.
Dead Freight: Freight charges that are incurred for space on a vessel, aircraft, or other transport modes that are reserved but not used.
Deferred Payment: An arrangement where payment for goods is made at a later date, often used in international trade to provide buyers with more flexibility in payment terms.
Demurrage: A charge applied when cargo is held at a port or terminal for longer than the allowed free time, often due to delays in unloading or customs clearance.
Delivery Duty Paid (DDP): An Incoterm where the seller is responsible for all costs, including duties, taxes, and shipping, until the goods are delivered to the buyer’s location.
Delivery Duty Unpaid (DDU): An Incoterm where the seller delivers goods to the buyer, but the buyer is responsible for paying any duties or taxes upon arrival.
Designated Port: A port that has been officially authorized or chosen by customs for specific types of trade or clearance procedures.
Discharge Port: The port at which cargo is unloaded from the shipping vessel and prepared for customs clearance or further transportation.
Diversion: The redirection of goods from their original destination to an alternate location, often requiring updated customs clearance.
Duty-Free: Goods that are exempt from customs duties, often under specific programs or agreements, such as for personal use or in duty-free shops.
Duty Paid: Goods for which customs duties and taxes have already been paid prior to arrival or during the customs clearance process.
Electronic Data Interchange (EDI): The electronic exchange of business documents, such as customs declarations, invoices, and shipping information, between parties in a trade transaction.
Electronic Funds Transfer (EFT): The electronic transfer of funds, often used for paying customs duties, taxes, or fees related to trade transactions.
Emergency Importation: The importation of goods on an urgent basis, often requiring expedited customs clearance and special handling.
Embargo: A government-imposed restriction or ban on trade with a specific country or on certain types of goods, often due to political or economic reasons.
End-User Certificate: A document that certifies the final recipient or user of goods, often required for certain types of sensitive exports, such as military or dual-use items.
Entry Summary: A document summarizing the details of an imported shipment, often required by customs authorities for clearance.
Equivalency Certificate: A document certifying that imported goods meet the required standards or regulations in the importing country, often necessary for food, pharmaceuticals, or machinery.
Export Credit: A type of financial assistance provided by governments or private institutions to exporters to help them cover the risks associated with international trade.
Export Declaration: A formal statement made by an exporter to customs authorities, declaring the export of goods from one country to another.
Export License: An official authorization from the government that grants permission to export certain goods, typically required for controlled or regulated products.
Ex Works (EXW): An Incoterm where the seller makes goods available for pick-up at their premises or another named location, with the buyer assuming responsibility for all costs and risks from that point onward.
Exemption from Duty: A situation where goods are exempted from paying customs duties, often due to specific agreements, concessions, or programs.
Fair Market Value (FMV): The estimated price at which goods would be bought or sold in an open market, often used as a basis for calculating customs duties.
False Declaration: A declaration made to customs authorities that contains incorrect or misleading information, which can lead to penalties, fines, or legal action.
Fast Track Customs: A customs procedure that allows for faster clearance of goods, typically for low-risk shipments or trusted trade partners.
Federal Maritime Commission (FMC): A U.S. government agency that regulates ocean shipping, ensuring that shipping practices are fair and transparent.
Foreign Trade Zone (FTZ): A designated area within a country where goods can be imported, processed, and exported without being subject to customs duties or taxes until they enter the domestic market.
Foreign Trade Policy: A set of rules and regulations established by a government to govern the import and export of goods, including incentives, restrictions, and tariff rates.
Foreign Exchange Control: A set of regulations or restrictions imposed by a country to control the flow of foreign currency, often affecting trade payments and the settlement of invoices.
Foreign Investment: Investment made by a foreign entity in a country’s domestic industries, which can impact trade regulations and market access.
Free On Board (FOB): An Incoterm where the seller delivers goods onto the ship at the port of shipment, and the buyer assumes responsibility for the cost and risk of transportation thereafter.
Free Port: A designated area in a port or airport where goods can be stored without being subject to customs duties or taxes, often for trade or re-export.
Freight Prepaid: An arrangement where the seller pays for all freight costs associated with shipping goods to the buyer’s location.
Freight Collect: An arrangement where the buyer pays for freight costs upon receipt of the goods.
Freight Bill: A document that specifies the charges for the transportation of goods, issued by the carrier to the shipper or consignee.
Free Carrier (FCA): An Incoterm where the seller is responsible for delivering the goods to a carrier or another person nominated by the buyer, with the buyer assuming responsibility after that point.
Freight Forwarder: A company or individual responsible for organizing the transport of goods on behalf of the shipper, often handling bookings, documentation, and customs clearance.
Generalized System of Preferences (GSP): A program that provides preferential treatment (such as lower tariffs) to imports from certain developing countries to promote their economic growth.
Goods in Transit: Goods that are in the process of being transported from the seller to the buyer, still under the responsibility of the transporter or shipping company.
Government Procurement: The process by which governments acquire goods, services, or works from private-sector companies, often involving international trade regulations and tendering processes.
Grace Period: A time extension provided for the completion of certain customs procedures or payments without incurring penalties, often granted in special circumstances.
Handling Charges: Fees levied by a port, terminal, or warehouse for the handling of cargo, including unloading, loading, or temporary storage.
Harmonized System (HS): A standardized international classification system used to categorize goods traded between countries, used to determine customs duties and taxes.
Hazardous Materials (Hazmat): Substances or items that pose risks to health, safety, or the environment, and require special handling, labeling, and documentation for transportation.
Import Broker: A professional who helps manage the importation process, including customs clearance, tariff classification, and payment of duties.
Import Permit: A government-issued document that authorizes the import of certain goods into a country, often required for regulated or restricted items.
Import Quota: A limit on the amount or value of certain goods that can be imported into a country during a specified time frame, often used to protect domestic industries.
Importer Security Filing (ISF): A U.S. requirement that importers file specific information about goods being imported before they arrive at a U.S. port, also known as the “10+2” rule.
In-Bond: A customs procedure allowing goods to be imported into a country without payment of duties or taxes while being moved through customs or to a bonded warehouse.
Inland Freight: Transportation of goods within a country, typically by road or rail, after they have been imported or before they are exported.
Incoterms (International Commercial Terms): A set of internationally recognized terms used in international shipping to define the responsibilities of buyers and sellers regarding delivery, risk, and costs.
Independent Customs Agent: A professional or firm providing customs clearance services, typically not employed by the importer/exporter but working as an intermediary to ensure compliance.
Inspection Fees: Charges imposed for the inspection of goods by customs, health, safety, or environmental authorities, usually in the context of high-risk goods.
Insurance Certificate: A document that proves insurance coverage for goods during transit, often required for international shipments to protect against loss or damage.
International Trade Agreement: A treaty or pact between countries that establishes the rules and regulations for trade between them, which may include tariffs, quotas, and regulatory standards.
International Transport: The movement of goods across international borders, typically involving sea, air, or land transport.
Invoice Declaration: A statement attached to an invoice declaring that the goods conform to the necessary customs regulations and are accurately valued.
Isolated Ports: Ports that are not part of a country’s general customs system, often requiring additional clearance and specific procedures for goods entering or leaving.
Itemized Billing: A detailed breakdown of costs associated with a shipment, including the cost of goods, shipping, customs duties, and any handling or inspection fees.
JIT (Just-In-Time) Shipping: A supply chain management strategy in which goods are delivered just in time for production or use, minimizing inventory and storage costs.
Joint Customs Declaration: A customs declaration made by multiple parties (importer, exporter, or agent) together to provide information regarding a shipment.
Joint Venture: A business arrangement where two or more parties work together on a specific project, often involving shared resources, risks, and profits, including in the context of international trade.
Key Account Management: The strategic management of a company’s most important customers, focusing on strengthening relationships and ensuring efficient, high-value transactions.
Landed Price: The total price of a good, including the cost of the item, shipping, insurance, taxes, and customs duties, effectively representing the all-in cost of acquiring the good.
Landing Charges: Fees incurred when goods are unloaded at a port or terminal, covering services such as unloading, handling, and inspection.
Letter of Credit (LC): A financial instrument issued by a bank on behalf of a buyer that guarantees payment to a seller upon fulfillment of specified terms, commonly used in international trade.
Letter of Protest: A formal document submitted by an importer to customs authorities, protesting the decision or valuation of goods in a customs inspection.
Liquidation of Duties: The final determination and settlement of customs duties owed after the goods have been imported and all customs procedures have been completed.
Logistics Chain: The complete sequence of processes involved in the movement and storage of goods, from raw materials to finished products, including customs clearance and distribution.
Lump-Sum Shipping Charges: A consolidated, flat fee charged for all aspects of shipping, including transportation, customs clearance, and handling.
Manifest Correction: A modification made to the shipping manifest to correct any errors or discrepancies related to cargo details.
Marking Requirements: Specific rules about how goods must be labeled or marked for identification, including the country of origin, safety warnings, and handling instructions.
Master Bill of Lading: The main document that covers an entire shipment when multiple smaller bills of lading are consolidated under one larger shipment.
Mercantilism: An economic theory advocating for maximizing exports and minimizing imports, often associated with trade policies that restrict imports through tariffs and quotas.
Minimum Advertised Price (MAP): A price restriction placed by the manufacturer on the minimum price that a reseller can advertise for a product, sometimes applicable in international trade.
Minimum Invoice Value: The minimum value of goods that can be declared on an invoice for customs purposes, often used to determine whether the goods are subject to certain duties or taxes.
Mode of Transport: The method or mode through which goods are moved, such as by air, sea, road, or rail.
Multimodal Transport: The use of two or more modes of transport (e.g., sea, rail, truck) for a single shipment, with one carrier being responsible for the entire journey.
National Import Monitoring System: A national system that tracks imports, ensuring that proper tariffs, quotas, and regulations are applied to foreign goods.
National Trade Policy: The official strategy or set of guidelines developed by a government to govern trade relationships, customs procedures, and international agreements.
Net Weight: The weight of the product itself, excluding packaging, which is typically used to calculate duties and taxes in international trade.
Non-Tariff Barriers (NTBs): Trade restrictions that do not involve tariffs but still limit trade, such as quotas, licensing requirements, and product standards.
Notified Body: An organization that is authorized by a government to assess and certify products for conformity with technical regulations, such as safety standards or environmental requirements.
NVOCC (Non-Vessel Operating Common Carrier): A company that provides ocean shipping services but does not operate its own vessels, instead acting as a carrier by arranging space with shipowners.
Origin Country: The country where goods are produced or manufactured, often used in trade to determine tariff rates or eligibility for preferential treatment under trade agreements.
Origin Declaration: A statement or certificate that verifies the country of origin of goods, often required for customs clearance and preferential tariffs.
Overseas Customs Clearance: The process of completing customs formalities for imported goods in the country of origin before shipment, often managed by an overseas broker.
Overland Transit: The transportation of goods across land routes, either by truck or rail, within the domestic or international trade context.
Partnership Agreement: A formal contract between two or more parties agreeing to collaborate on international trade, often outlining roles, responsibilities, and profit-sharing arrangements.
Passenger Cargo: Goods carried by air or sea in conjunction with passenger transportation, often subject to specific regulations for customs and safety.
Partial Delivery: A situation in which only part of an order or shipment is delivered, requiring additional customs processing or documentation.
Port of Entry: The designated location where goods are first brought into a country and undergo customs clearance, such as an airport, seaport, or land border.
Postponed VAT Accounting (PVA): A system that allows businesses to account for VAT on imports after the goods have been imported, rather than at the point of entry, often used in the European Union.
Prepayment: A payment made before the goods are shipped or the services are rendered, often used in international trade as a form of assurance.
Processing Fee: A charge imposed by customs authorities or a logistics provider for handling documentation, clearing goods through customs, or other trade-related services.
Pre-shipment Inspection: An inspection conducted before goods are shipped, often to verify compliance with regulations, quality standards, or contractual requirements.
Proforma Invoice: A preliminary invoice provided by the seller to the buyer, detailing the goods to be shipped, their price, and other terms of sale, often used for customs purposes before the final invoice is issued.
Prohibited Goods: Goods that are banned from importation or exportation by law, typically due to safety, security, or environmental concerns, such as certain chemicals, drugs, or endangered species.
Proof of Delivery (POD): A document signed by the recipient of the goods, confirming that the goods have been delivered in good condition and received.
Port of Discharge: The port where goods are unloaded from a vessel upon arrival, typically where the consignee takes possession and the customs clearance process begins.
Port of Loading: The port where goods are loaded onto a shipping vessel for transport to another country or destination.
Price List: A document listing the prices of goods or services offered for sale, often required for customs or import-export documentation to verify the value of goods.
Processing Trade: A trade arrangement in which a company imports raw materials to process into finished goods, often in a foreign country, before re-exporting the products.
Principal Customs Officer: A senior official responsible for overseeing customs operations, ensuring compliance with regulations, and enforcing trade laws at a customs facility.
Provisional Duty: A temporary customs duty imposed on goods under investigation, often used to prevent damage to domestic industries while the investigation is ongoing, such as in anti-dumping cases.
Quota Management: The process of managing and allocating import quotas for specific goods, to ensure compliance with trade agreements and government regulations.
Re-Export: The process of exporting goods that were previously imported, either to return them to their country of origin or to send them to another destination.
Reclassification: The process of changing the classification of goods based on updated information or a ruling by customs authorities, often affecting the applicable tariff or duty rates.
Redelivery: The act of returning goods to their origin or another location after an unsuccessful delivery attempt or changes in shipping instructions.
Release Order: A document issued by customs or other authorities allowing goods to be released from customs control after the necessary duties and taxes have been paid.
Remanufactured Goods: Products that have been refurbished or rebuilt from used goods, often subject to specific regulations regarding their import and customs treatment.
Risk-Based Approach: A customs clearance strategy that focuses on inspecting high-risk shipments more thoroughly while expediting the clearance of low-risk shipments.
Safe Port: A designated, secure location for goods to be temporarily stored during transit or in the event of unforeseen circumstances, ensuring that the goods are not exposed to risk.
Seal: A security device placed on containers or cargo to prevent tampering or theft during transit. Seals are often used for customs inspection and verification purposes.
Second-Hand Goods: Goods that have been previously owned or used and are being resold. Customs authorities often apply different regulations or duties to second-hand goods compared to new goods.
Shipper’s Export Declaration (SED): A document required by the U.S. government for shipments over a certain value, providing information about the goods being exported and their destination.
Shipper’s Liability: The legal responsibility of the shipper for loss, damage, or delay of goods during transport, unless otherwise specified in the shipping agreement.
Ship’s Manifest: A document detailing the cargo on a ship, including the names of the consignees, quantities, descriptions of goods, and destinations, used for customs clearance.
Short Shipment: A situation in which fewer goods are delivered than originally ordered, which can trigger claims for compensation or adjustments.
Shuttle Service: A transportation service used to move goods between different locations, such as between a warehouse and port, or between airports and customs facilities.
Single Administrative Document (SAD): A standardized form used by customs in the European Union for declaring goods for import or export, containing details like the classification, value, and origin of the goods.
Sole Proprietor: A business owner who operates the business alone, typically liable for all aspects of the business, including customs compliance for their imports and exports.
Special Economic Zone (SEZ): A geographically defined area where businesses benefit from favorable trade and economic conditions, such as tax incentives or relaxed customs regulations.
Special Tariff: A reduced or preferential tariff rate granted to certain countries, industries, or types of goods, often as part of a trade agreement or preferential treatment program.
Split Shipment: A shipment that is divided into multiple smaller consignments, often due to logistical reasons or to comply with restrictions in the destination country.
Standard Operating Procedure (SOP): A set of established guidelines or instructions for performing specific tasks, such as customs procedures, to ensure consistency and compliance.
State Trading Enterprise: A government-owned or government-controlled company involved in the import and export of goods, often operating under different regulations than private sector entities.
Subcontracting: The practice of hiring another company to carry out specific tasks related to trade, logistics, or customs clearance, often in cases where specialized expertise is required.
Supply Chain: The entire network of organizations, resources, and activities involved in producing and delivering goods to consumers, from raw material suppliers to final delivery.
Surcharges: Additional fees added to the base cost of a service, such as shipping or customs duties, which can be imposed for reasons like fuel costs or peak season demand.
Supply Chain Visibility: The ability to track and monitor goods as they move through the entire supply chain, often facilitated by technology like GPS, RFID, and data analytics.
Tare Weight: The weight of the packaging or container in which goods are shipped, typically deducted from the total weight to determine the net weight of the goods.
Tariff Classification: The process of determining the appropriate category or code under the Harmonized System (HS) for goods, which affects the applicable customs duties and taxes.
Temporary Importation: The importation of goods for a specific period of time, after which they are either re-exported or returned to the original country without being subject to regular customs duties.
Terminal Handling Charges (THC): Fees charged by a port terminal for the handling and processing of cargo, including unloading, storage, and movement within the terminal.
Temporary Storage: The practice of holding goods at a customs-approved location for a limited time before they are cleared through customs or moved to their final destination.
Trade Facilitation Agreement (TFA): An international agreement under the World Trade Organization (WTO) aimed at reducing trade barriers and simplifying customs procedures.
Trade Finance: A range of financial products and services designed to support international trade, such as letters of credit, trade credit insurance, and factoring.
Transshipment: The process of transferring cargo from one vessel, aircraft, or vehicle to another during the course of transport, typically at a transshipment hub or intermediate port.
Transporter’s Liability: The legal responsibility of the transport company for ensuring that goods are delivered safely and on time, and for compensating the shipper in case of loss or damage.
Transit Declaration: A customs declaration made for goods in transit, outlining the intended route and destination, and sometimes the customs duties to be deferred until arrival.
Transit Time: The total time it takes for goods to move from the point of origin to the destination, including loading, transport, customs clearance, and unloading.
Transit Risk: The potential for loss, damage, or delay of goods during transit, often covered by insurance to protect against unexpected events.
Transitional Period: A defined period of time during which certain changes to trade regulations or tariffs are gradually implemented, allowing businesses time to adjust.
Transloading: The process of transferring goods from one mode of transportation to another, such as from rail to truck or from one shipping container to another.
U.S. Customs and Border Protection (CBP): The U.S. federal agency responsible for enforcing customs laws, regulating imports and exports, and protecting the nation’s borders.
Value-Added Tax (VAT): A consumption tax levied on goods and services at each stage of production or distribution, commonly applied to international transactions in many countries.
Vessel Operator: The company or entity that owns or operates a ship, responsible for the management, operation, and maintenance of the vessel.
Warehouse Receipt: A document issued by a warehouse operator that certifies the storage of goods in a warehouse, often used to secure financing or facilitate customs clearance.
Warehouse Bond: A customs bond used to guarantee the payment of duties and taxes on goods stored in a bonded warehouse before they are released into the domestic market.
Weighbridge: A large scale used for weighing vehicles and cargo, often at customs facilities or ports, to ensure accurate documentation for customs and transport purposes.
Wharfage Fees: Charges assessed for the use of a wharf or dock for loading and unloading goods, often based on the volume or weight of cargo.
World Trade Organization (WTO): An international organization that regulates global trade, resolving disputes between countries and establishing agreements to facilitate trade.
Zone of Influence: A geographic area where a country or company has a significant impact on trade, often due to favorable trade agreements or regulatory practices.
Zero Duty: A tariff rate of zero percent applied to certain goods, meaning that no customs duties are charged on their importation, often due to preferential trade agreements or exemptions.
Mastering these 600 customs and trade terms is a vital step toward improving your international shipping efficiency and ensuring compliance with global trade regulations. Whether you’re managing imports, exports, or cross-border logistics, having a strong grasp of these terms can help you avoid common pitfalls and optimize your operations. Bookmark this guide as a valuable resource, and stay ahead of the curve in the dynamic world of international trade. By continuously updating your knowledge of customs and trade terminology, you’ll be well-prepared to tackle any challenges that arise in the global marketplace.
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