A

Advance Ruling: A binding decision from customs authorities on the tariff classification, origin, or valuation of goods prior to importation.

Ad Valorem Duty: A tax based on the value of the imported goods, usually expressed as a percentage.

Air Waybill (AWB): A document issued by an airline to acknowledge receipt of cargo and outlines the terms of transport.

Anti-Dumping Duty: A tariff imposed to protect domestic industries from foreign companies selling goods below fair market value.

ATA Carnet: An international customs document allowing temporary importation of goods without the need to pay duties or taxes.

Authorized Economic Operator (AEO): A company that meets certain compliance, financial, and security standards to receive customs benefits.

B

Bill of Lading (BOL): A legal document between a shipper and carrier detailing the type, quantity, and destination of the goods being shipped.

Bonded Goods: Goods stored in a bonded warehouse under customs control until import duties are paid.

Bonded Warehouse: A warehouse where goods can be stored without payment of duties until the goods are removed for sale or export.

Brokerage: The business or service of acting as an intermediary in customs clearance or transportation of goods.

C

Cabotage: The transport of goods or passengers between two locations within the same country by a foreign carrier.

Cargo: Goods or merchandise transported by air, sea, or land.

Carnet: A customs document that allows goods to be temporarily imported without paying duties.

Carrier: A company or individual engaged in the transport of goods.

Certificate of Origin: A document used in international trade to certify that goods being exported are wholly obtained, produced, or manufactured in a particular country.

CFR (Cost and Freight): A trade term indicating that the seller pays for the cost and freight to transport goods to a destination port.

CIF (Cost, Insurance, and Freight): A trade term where the seller pays for the cost, insurance, and freight to transport goods to a destination.

Classification: The process of determining the appropriate tariff category for goods.

Clearance: The act of passing goods through customs so they can enter or leave a country.

COGSA (Carriage of Goods by Sea Act): U.S. law governing the rights and obligations of parties involved in ocean freight transport.

Commercial Invoice: A document used in international trade to show the buyer and seller details, price, and terms of sale.

Commodity Code: A code used to classify goods in international trade for tariff and duty purposes.

Consignee: The person or company to whom goods are shipped and delivered.

Consignor: The person or company that sends goods to a consignee.

Consolidation: The process of combining smaller shipments into one larger shipment to reduce shipping costs.

Container: A large standardized box used for transporting goods by ship, truck, or rail.

Container Freight Station (CFS): A facility where goods are consolidated or deconsolidated for shipping or delivery.

Customs: A government agency responsible for regulating the import and export of goods and collecting duties.

Customs Bond: A financial guarantee that ensures compliance with customs regulations and payment of duties.

Customs Broker: A licensed professional who assists in clearing goods through customs and ensuring compliance with regulations.

Customs Clearance: The process of obtaining permission from customs authorities for goods to enter or leave a country.

Customs Duty: A tax imposed on imports by the customs authority of a country.

Customs Entry: A declaration made to customs authorities detailing the goods being imported.

Customs Invoice: A specialized invoice used to declare the value and nature of goods being imported for customs purposes.

D

Demurrage: A charge applied when goods or containers remain at a port or terminal beyond the allocated free time.

Detention Fee: Charges incurred when a shipping container is not returned to the port or depot within the allowed time.

Duty: A tax levied by a government on the import or export of goods.

Duty Drawback: A refund of customs duties paid on imported goods that are subsequently exported or used in the production of exported goods.

E

Entry: The process of declaring goods to customs for importation or exportation.

Excise Duty: A tax on specific goods such as alcohol, tobacco, and fuel, typically applied domestically.

Exemptions: Certain goods or services that are free from duties or taxes under specific conditions.

Export: The process of sending goods to another country for sale or trade.

Export License: A government-issued document authorizing the export of specific goods.

F

Free Carrier (FCA): A trade term indicating that the seller delivers goods to a carrier or another person nominated by the buyer.

Free On Board (FOB): A trade term indicating that the seller is responsible for delivering goods onto a ship, at which point the risk transfers to the buyer.

Freight: Goods transported from one location to another, typically by truck, train, ship, or plane.

Freight Forwarder: A company or person that arranges the shipment of goods on behalf of others.

G

General Agreement on Tariffs and Trade (GATT): An international treaty aimed at reducing tariffs and other trade barriers.

Generalized System of Preferences (GSP): A program that provides preferential duty-free treatment for products from developing countries.

H

Harmonized System (HS): A standardized international system for classifying goods for customs and tariff purposes.

I

Import: The process of bringing goods into a country from abroad.

Import Duty: A tax imposed by a government on goods entering a country.

Importer of Record (IOR): The entity responsible for ensuring that imported goods comply with local laws and regulations, including payment of duties and taxes.

Incoterms: A set of internationally recognized rules defining the responsibilities of sellers and buyers in international trade.

Inland Bill of Lading: A document used for the transport of goods over land.

Inspection: The process of examining imported goods to ensure they meet customs regulations and standards.

Intermodal Transport: The use of multiple modes of transport (e.g., ship, truck, rail) to move goods from origin to destination.

International Trade: The exchange of goods and services between countries.

L

Landed Cost: The total cost of a product once it has arrived at the buyer's doorstep, including shipping, duties, and taxes.

Less Than Container Load (LCL): A shipment that does not fill an entire container and is consolidated with other shipments.

Licensing: Government-issued permits allowing the export or import of certain goods.

M

Manifest: A document listing the cargo, passengers, and crew on a vessel or aircraft.

Most Favored Nation (MFN): A trade status ensuring that a country will not be treated worse than any other trading partner.

N

Non-Tariff Barriers: Regulatory measures other than tariffs that restrict trade, such as quotas, licenses, and import bans.

North American Free Trade Agreement (NAFTA): A trade agreement between Canada, the United States, and Mexico aimed at reducing trade barriers.

O

Ocean Freight: The transport of goods by sea.

P

Packing List: A document that itemizes the goods in a shipment, often used for customs clearance.

Port of Entry: A designated location where goods or people may legally enter a country.

Pre-Arrival Processing System (PAPS): A system used by U.S. Customs to process shipments before they arrive at the border.

Preferential Tariff: A lower tariff rate applied to goods from certain countries or regions under a trade agreement.

Q

Quota: A limit on the quantity of a specific good that can be imported into a country.

R

Re-Export: The process of exporting goods that were previously imported into a country.

Release: The authorization given by customs for goods to be taken by the importer after clearance.

Restricted Goods: Goods that are subject to specific import or export restrictions by law.

Rules of Origin: Criteria used to determine the country of origin of a product for customs purposes.

S

Security Filing: A requirement to file certain data with customs before a shipment is loaded onto a vessel.

Shipper's Export Declaration (SED): A document required by the U.S. government for the export of goods valued above a certain threshold.

Shipping Manifest: A document listing all cargo aboard a ship, plane, truck, or train.

Supply Chain: The entire process of producing and delivering a product from raw materials to the final consumer.

T

Tariff: A tax imposed by a government on imported or exported goods.

Tariff Classification: The process of determining the appropriate tariff code for goods based on their nature and use.

Tariff Rate Quota (TRQ): A system where a lower tariff is applied to imports up to a certain quantity, after which a higher tariff applies.

Temporary Importation: The importation of goods for a limited time without payment of customs duties.

Terminal Handling Charges (THC): Fees charged for the handling of goods at a terminal, such as loading and unloading from vessels.

Transshipment: The transfer of goods from one ship, aircraft, or other mode of transportation to another during the journey to the final destination.

Trust Fund Duty: A customs duty collected and deposited into a fund designated for specific uses, such as improving infrastructure.

V

Value-Added Tax (VAT): A tax applied to the sale of goods and services, often included in the price paid by consumers.

Valuation: The process of determining the value of goods for customs purposes, typically based on the transaction value or market value.

W

Warehouse Receipt: A document issued by a warehouse listing goods received for storage.

Waybill: A document that accompanies goods during transit and provides details of the shipment.

Wharfage: A fee charged for the use of a wharf for loading or unloading cargo.

World Customs Organization (WCO): An intergovernmental organization that promotes the efficiency and uniformity of customs procedures globally.

Z

Zone Tariff: A special tariff applied to goods entering or leaving a designated economic zone.

Zone-to-Zone Transfer: The movement of goods between two bonded zones without customs duties being applied.

Zone Admission: The process of goods entering a customs-controlled zone, such as a Free Trade Zone (FTZ).

Zone Status: The customs status assigned to goods within a customs-controlled zone, which may impact the duties or taxes due when the goods are moved out of the zone.

Zone Export: The shipment of goods from a customs-controlled zone to a foreign country.

Zone Entry: The documentation and procedures required for goods to enter a customs-controlled zone.

Zone Benefits: Incentives or reduced tariffs offered to businesses operating in a customs-controlled zone.

Zone Operator: An entity that manages and operates a customs-controlled zone, ensuring compliance with customs regulations.