|
ACRONYM/TERM |
DEFINITION |
|
ABI |
Automated Broker
Interface - a part of Customs Automated Commercial
System, permits transmission of data pertaining to
merchandise being imported into the U.S. Qualified
participants include brokers, importers, carriers, port
authorities and independent data processing companies
referred to as service centres. |
|
ACE |
Automated
Commercial Environment - Part of Customs Automated
Commercial System which controls imported merchandise
from the time a carrier’s cargo manifest is
electronically transmitted to Customs until control is
provided to another segment of the ACS. |
|
ACH |
Automated
Clearinghouse - The Automated Clearinghouse (ACH) is a
feature of the Automated Broker Interface that is a part
of Customs Automated Commercial System. The ACH combines
elements of bank lock box arrangements with electronic
funds transfer services to replace cash or check for
payment of estimated duties, taxes and fees on imported
merchandise. |
|
ACS |
Automated
Commercial System - The Customs Automated Commercial
System, ACS, is a joint public-private sector
computerized data processing and telecommunications
system linking customhouses, members of the import trade
community and other government agencies with the Customs
computer. Trade users file import data electronically,
receive needed information on cargo status and query
Customs files to prepare submissions. Duties, taxes and
fees may be paid by electronic statement through a
Treasury-approved clearinghouse bank. ACS contains the
import data used by Census to prepare U.S. foreign trade
statistics. |
|
Ad Valorem Duty |
Duty imposed on
imported merchandise based on a percentage of the value. |
|
ADD |
Antidumping duty -
A tariff imposed to discourage sale of foreign goods at
less than a fair market price that would be detrimental
to local manufacturers. See Dumping. |
|
Air Waybill |
A bill of lading
that covers both domestic and international flights
transporting goods to specified destination.
Technically, the air waybill is a non-negotiable
instrument of air transport that serves as a receipt for
the shipper, indicating that the carrier has accepted
the goods listed therein and obligates itself to carry
the consignment to the airport of destination according
to specified conditions. |
|
All Risk |
Extensive
insurance coverage of cargo including coverage due to
external causes such as fire, collision, pilferage,
etc., but does not include special risks such as those
resulting from acts of war. |
|
AMS |
Automated Manifest
System |
|
APEC |
Asia Pacific
Economic Cooperation |
|
APHIS |
A branch of the
USDA, the Animal Plant Inspection Service provides
leadership in ensuring the health and care of animals
and plants, improving agricultural productivity and
competitiveness and contributing to the national economy
and the public health. |
|
Appraisement |
The determination,
by a proper Customs official, of the dutiable value of
imported merchandise following procedures outlined in
the Tariff Act of 1930, as amended. |
|
Arrival Notice |
This notice, which
advises the consignee that cargoes have arrived, is
issued by steamship lines and can also serve as the
freight bill. |
|
ASEAN |
Association of
Southeast Asian Nations |
|
Assist |
Items furnished to the producer
either free of charge or at a reduced amount or used in
the production of merchandise that will be imported.
Examples include tools, dies, and molds. Artwork
performed in the U.S. is not considered an assist. The
value of an assist |
|
ATPA |
Andean Trade
Preferences Act |
|
AWB |
Air Waybill |
|
BEET |
Business
Executives Enforcement Teams |
|
BIS |
Bureau of Industry
and Security |
|
BL |
Bill of Lading - A
contract between the owner of the goods and the carrier.
There are primarily two types of ladings. A straight
bill of lading is nonnegotiable. A negotiable or
shipper's order bill of lading can be bought, sold, or
traded while goods are in transit and is used for letter
of credit transactions. The customer usually needs the
original or a copy as proof of ownership to take
possession of the goods. |
|
Bonded Warehouse |
A warehouse
authorized by Customs authorities for storage or
manufacture of goods on which payment of duties is
deferred until the goods enter Customs territory. The
goods are not subject to duties if reshipped to foreign
points. |
|
Bureau of Census -Department of
Commerce |
In relationship to
imports, the DOC has two primary interests. The first
interest pertains to the Committee for Implementation of
Textile Agreements (CITA) which regulates certain
textile imports under Section 204 of the Agricultural
Adjustment Act. The second area of interest involves the
collection of statistical data from import shipments. |
|
Buying Commission |
A buying
commission consists of any monies paid to the buyer's
agent, who is controlled by or works on behalf of the
buyer. |
|
CACM |
Central American
Common Market |
|
Cargo Selectivity System |
The Cargo
Selectivity System, a part of Customs Automated
Commercial System, specifies the type of examination
(intensive or general) to be conducted for imported
merchandise. The type of examination is based on
database selectivity criteria such as assessments of
risk by filer, consignee, tariff number, country of
origin and manufacturer/shipper. |
|
CARICOM |
Caribbean Common
Market |
|
Carnet |
Customs documents
permitting the holder to carry or send sample
merchandise temporarily into certain foreign countries
without paying duties or posting bonds. A carnet serves
as both the entry document and a Customs bond. |
|
Cartage |
Movement of
freight via trucking, draying or carting. |
|
CBERA |
Caribbean Basin
Economic Recovery Act |
|
CBI |
Caribbean Basin
Initiative |
|
CCL |
Commerce Control
List |
|
Certificate of Origin |
Certain nations
require a signed statement as to the origin of the
export item. Such certificates are usually obtained
through a semiofficial organization such as a local
Chamber or Commerce. A certificate may be required even
though the commercial invoice contains the information. |
|
CF 3461 -Immediate Release |
All imported
merchandise (other than merchandise admitted into a FTZ)
must be released by U.S. Customs before it can be
received by the importer/consignee. The CF 3461,
Immediate Release, is the form used to obtain the proper
release from Customs. |
|
CFTA |
Canada Free Trade Agreement
|
|
Classification |
Classification is
the categorization of merchandise according to the
Harmonized Tariff Schedules of the U.S. Classification
affects the duty status of imported merchandise.
Simplified, it is the process of finding the tariff
classification which best describes the imported good. |
|
CM |
Contract
Manufacturer |
|
CMC |
Customs Management
Center |
|
Compound Duty |
Tax imposed on
imported merchandise based on a percentage of value and
also on the net weight or number of pieces, etc. |
|
Consignment |
Delivery of
merchandise from an exporter (the consignor) to an agent
(the consignee) under agreement that the agent sell the
merchandise for the account of the exporter. The
consignor retains title to the goods until sold. The
consignee sells the goods for commission and remits the
net proceeds to the consignor. |
|
Consignor |
The person or
company shown on the bill of lading as the shipper. |
|
Consolidation |
The combination of
many small shipments into one container, often with more
than one destination/consignee. |
|
Consumption Entry |
Required by U.S.
Customs for goods entering the United States.
Information on the form includes cargo origin and
description and estimated duties, which must be paid at
the time the document is filed. |
|
Container |
Single rigid,
sealed, reusable metal box in which merchandise is
shipped by vessel, truck or rail. |
|
Container Freight Station (CFS) |
Facility used by
ocean carriers to load/unload cargo to and from
containers. Most less-than-container-load lots of cargo
are either packed into or de-vanned at the CFS. |
|
Country of Origin |
Country where
merchandise was grown, mined or manufactured. |
|
Customs Broker |
Individual or firm
licensed by Customs to enter and clear goods on behalf
of others through Customs. |
|
Customs Territory |
Includes the
States, the District of Columbia and Puerto Rico |
|
CVD |
Countervailing
Duty - A special duty imposed on imports to offset the
benefits of subsidies paid to producers or exporters in
the exporting country |
|
Date of Exportation |
The actual date
the merchandise leaves the country of exportation for
the U.S. |
|
DCS |
Destination
Control Statement |
|
Demurrage |
Excess time taken
for loading or unloading a vessel. Demurrage refers only
to situations in which the charter or shipper, rather
than the vessel's operator, is at fault. |
|
Devanning |
Unloading of cargo
from a container. |
|
DOC |
Department of
Commerce |
|
Dock Receipt |
A dock receipt is
used to transfer accountability when the domestic
carrier moves the export item to the port of embarkation
and left with the international carrier for export. |
|
DOD |
Department of
Defense |
|
DOE |
Department of
Energy |
|
Domestic Status |
Domestic status
material is Growth, product, or manufacture of the U.S.
on which all IRS taxes have been paid. · Previously
imported and on which duty and tax have been paid.·
Previously entered free of duty and tax. |
|
DOS |
Department of
State |
|
DPL |
Denied Persons
List |
|
Drawback |
Refund of all or part of Customs
duties paid on imported merchandise which was
subsequently either manufactured into a different
article or re-exported. |
|
DTRA |
Defense Threat
Reduction Agency |
|
Dumping |
The sale of a
commodity in a foreign market at less-than-fair value.
Dumping is generally recognized as an unfair practice
because the practice can disrupt markets and injure
producers of competitive products in an importing
country. Article VI of the GATT permits imposition of
antidumping duties equal to the difference between the
price sought in the importing country and the normal
value of the product in the exporting country. |
|
Duty |
Tax levied by the
government on the import, export or consumption of goods
and usually based on the value of the goods or some
other factors such as weight or quantity or a
combination of both. |
|
EAA |
Export
Administration Act |
|
EAR |
Export
Administration Regulations |
|
EC/EU |
European
Community/European Union |
|
ECCN |
Export Control
Classification Number |
|
EFTA |
European Free
Trade Association |
|
EL |
Entity List |
|
EMS |
Export Management
System |
|
EPCI |
Enhanced
Proliferation Control Initiative |
|
FACR |
Foreign Assets
Control Regulations |
|
FDA Form 2877 |
Declaration for
Imported Electronic Products Subject to Radiation
Control |
|
FDI |
Foreign Direct
Investment |
|
FMS |
Foreign Military
Sales |
|
Foreign Inland Freight |
Foreign inland
freight consists of the charges to move the freight from
the foreign factory to the place of loading. Foreign
inland freight charges are dutiable unless the terms of
sale are “ex-factory” or the charges were incurred
incident to the international shipment. |
|
Freight Forwarder |
An independent
business which assembles, collects and consolidates
less-than-truckload freight. Also, a person acting as an
agent in the transshipping of freight to or from foreign
countries and the clearing of freight through Customs
for compensation. |
|
FTAA |
Free Trade Area of
the Americas |
|
FTSR |
Foreign Trade
Statistics Regulations |
|
GATS |
General Agreement on Trade in
Services |
|
GATT |
General Agreement
on Tariffs and Trade |
|
GDP |
Gross Domestic
Product |
|
GSP |
Generalized System
of Preferences |
|
Harmonized Tariff System (HTS) * |
The Harmonized
Commodity Description & Coding System (or HTS) is a
system for classifying goods in international trade,
developed under the direction of the Customs Cooperation
Council. Beginning on January 1, 1989, the new HS
numbers replaced previously adhered-to schedules in over
50 countries, including the United States. For the
United States, the HTS numbers are the numbers that are
entered on the actual export and import documents. Any
other commodity code classification number (SIC, SITC,
end-use, etc.) is just rearrangements and
transformations of the original HS numbers. |
|
House Air Waybill |
Contains all the
information of an air waybill but is not a financial
document. This is a contract between the shipper and
freight forwarder. All the shipments covered by the
individual house air waybills are consolidated, and a
single air waybill is issued to cover the consolidated
shipment. |
|
IC |
Import Certificate |
|
IEEPA |
International
Emergency Economic Powers Act |
|
Immediate Delivery |
Customs entry
procedure that provides for immediate release of a
shipment prior to the arrival of merchandise although
the merchandise must arrive within the port limits for
the release to take effect. The entry summary with
duties must be filed within 10 working days after
release. |
|
Importer Number |
Identification
number assigned by the Customs Service to track
importers, usually IRS number for the company. |
|
In bond |
Procedure under
which goods are transported or warehoused under Customs
supervision until they are either formally entered into
Customs territory and duties paid or until they are
exported. |
|
Incoterms |
Maintained by the
International Chamber of Commerce (ICC), this
codification of terms is used in foreign trade contracts
to define which parties incur the costs and at what
specific point the costs are incurred. |
|
Informal Entry |
The informal entry
is a simplified import entry procedure for most
commercial shipments not over $2,000 in value. The
statutory limit for informal entries is actually $2,500. |
|
Insurance Certificate |
This certificate
is used to assure the consignee that insurance is
provided to cover loss of or damage to the cargo while
in transit. |
|
Intensive Exam |
An intensive exam
result means that Customs wants to physically examine
the merchandise. Inspectors have the ability to
“override” some intensive exams and convert them to
general exams. |
|
IPR |
Intellectual
Property Rights |
|
ITA |
Information
Technology Agreement |
|
IVL |
Individual
Validated License |
|
L/C - |
Letter of Credit -
A financial document issued by a bank at the request of
the consignee guaranteeing payment to the shipper for
cargo if certain terms and conditions are fulfilled.
Normally, the letter of credit contains a brief
description of the goods, documents required, a shipping
date, and an expiration date after which payment will
not longer be made. |
|
LCL |
Less than
container load |
|
Liquidation System |
The Liquidation
System, a part of Customs Automated Commercial System,
closes the file on each entry and establishes a batch
filing number which is essential for recovering an entry
for review or enforcement purposes. An entry liquidation
is a final review of the entry. The process of
liquidation is currently under revision by the Customs
Service. |
|
Marine Cargo Insurance |
Broadly, insurance
covering loss of, or damage to, goods at sea. Marine
insurance typically compensates the owner of merchandise
for losses in excess of those which can be legally
recovered from the carrier. Losses may include fire,
shipwreck, piracy, inclement weather and various other
causes. |
|
Marking (or Marks) |
Letters, numbers
and other symbols placed on cargo packages to facilitate
identification. |
|
Marks of Origin |
The physical
markings on a product that indicate the country of
origin where the article was produced. Customs rules
require marks of origin of most countries. |
|
MERCOSUR |
Southern Common Market |
|
MLA |
Manufacturing
License Agreement |
|
Mod Act |
The Customs
Modernization Act is a comprehensive effort by the U.S.
Customs Service to streamline and automate the
commercial operations and improve compliance with
Customs laws and regulations. |
|
MOU |
Memorandum of
Understanding |
|
MPF |
Merchandise
Processing Fee is a fee assessed for formal entries
based on 0.21% of the invoice value, with a minimum of
$25 per formal entry and a maximum of $485. |
|
NAFTA |
North American
Free Trade Agreement. A free trade agreement that
comprises Canada, the U.S. and Mexico, exceeding 360
million consumers and a combined output of $6
trillion--20 % larger than the European Community. |
|
NATO |
North Atlantic
Treaty Organization |
|
NDA |
Non-disclosure
Agreement |
|
Net Weight (Actual Net Weight) |
Weight of the
goods alone without any immediate wrappings (e.g., the
weight of the contents of a tin can without the weight
of the can). |
|
NIS |
Newly Independent
States of the ex-Soviet Republic. |
|
NVOCC |
Non-Vessel
Operating Common Carrier: A cargo consolidator of small
shipments in ocean trade, generally soliciting business
and arranging for or performing containerization
functions at the port. |
|
OAC |
Office of
Antiboycott Compliance |
|
Ocean Bill of Lading |
A receipt for the
cargo and a contract for transportation between a
shipper and the ocean carrier. It may also be used as an
instrument of ownership which can be bought, sold, or
traded while the goods are in transit. To be used in
this manner, it must be a negotiable "Order"
Bill-of-Lading. A Clean Bill-of-Lading is issued when
the shipment is received in good order. If damaged or a
shortage is noted, a clean bill-of-lading will not be
issued. An On Board Bill-of-Lading certifies that the
cargo has been placed aboard the named vessel and is
signed by the master of the vessel or his
representative. On letter of credit transactions, an On
Board Bill-of-Lading is usually necessary for the
shipper to obtain payment from the bank. When all
Bills-of Lading are processed, a ship's manifest is
prepared by the steamship line. This summarizes all
cargo aboard the vessel by port of loading and
discharge. An Inland Bill-of-Lading (a waybill on rail
or the "pro forma" bill-of-lading in trucking) is used
to document the transportation of the goods between the
port and the point of origin or destination. It should
contain information such as marks, numbers, steamship
line, and similar information to match with a dock
receipt. |
|
OECD |
Organization for Economic
Cooperation and Development |
|
OFAC |
Office of Foreign
Assets Control |
|
Open Insurance |
A marine insurance
policy that applies to all shipments made by an exporter
over a period of time rather than to a single shipment. |
|
Packing Costs |
Packing costs are
defined as “the cost of all containers (except
instruments of international trade) and coverings of
whatever nature or materials used in placing merchandise
in condition, packed and ready for shipment to the
United States. |
|
Packing List |
A list showing the
number and kinds of items being shipped, as well as
other information needed for transportation purposes. |
|
Paperless |
A paperless result
indicates that the merchandise is low risk from a
compliant importer. The broker places a stamp on the
CF3461 and signs the document; thus, the merchandise is
released without a Customs official ever looking at the
documents. |
|
PO |
Purchase Order |
|
Port of Entry |
A port at which
foreign goods are admitted into the receiving country;
port where the imported merchandise is entered for
consumption. |
|
Port of Import |
First port within
the Customs territory where imported merchandise
arrives. |
|
Pro Forma Invoice |
An invoice
provided by a supplier prior to the shipment of
merchandise informing the buyer of the kinds and
quantities of goods to be sent, their value, and
important specifications (weight, size, etc.). |
|
Protest |
A “protest” is the
method primarily used by importers to take issue with
Customs decisions with which they disagree. A protest is
normally utilized as an opportunity to provide evidence
that will result in the refund of duties and other
charges that were erroneously paid. |
|
Reasonable Care |
“That degree of
care which a person of ordinary prudence would exercise
in the same or similar circumstances. Due care under all
circumstances. Failure to exercise such care is ordinary
negligence.” |
|
Related Parties |
-
Members of the same family, spouse,
and lineal descendants
- Officers or directors if
each individual is also an officer or director of the
other organization
- Partners
- Person owning, controlling or holding with power to
vote 5% or more of outstanding stock
- Person who is an officer or director in both
organizations |
|
SACU |
Southern African
Customs Union |
|
SADC |
Southern African Development
Community |
|
SDN |
Specially
Designated Nationals |
|
SED |
Shipper's Export
Declaration |
|
Shipping Weight |
Shipping weight
represents the gross weight in kilograms of shipments,
including the weight of moisture content, wrappings,
crates, boxes and containers (other than cargo vans and
similar substantial outer containers). |
|
Ships Manifest |
A list, signed by
the captain of a ship, of the individual shipments
constituting the ship's cargo. |
|
SLI |
Shippers Letter of
Instruction |
|
SO |
Sales Order |
|
Surety Bond |
A surety bond is a
promise or guarantee of payment to U.S. Customs in the
event of a default in any terms of the importation laws.
If the importer does not comply, Customs will look to
the surety for payment and compliance. |
|
Tare Weight |
The weight of a
container and/or packing materials without the weight of
the goods it contains. |
|
Tariff |
List or schedule
of merchandise with applicable rates to be paid or
charged for each listed article. A schedule of duties or
taxes assessed by a government on goods as they enter or
leave a country. |
|
Tariff Rate Quota |
Permits a
specified quantity of merchandise to be entered at a
reduced rate during a specified period. |
|
Tariff Shift |
A change in tariff
classification may be from one heading in a chapter to
another heading in the same chapter. Some changes must
be from one chapter to another chapter. |
|
TDO |
Table of Denial
Orders |
|
Textile Declaration |
In addition to the
original textile visa, shipments containing textiles
must be accompanied by either a single or multiple
country declaration which provides certification as to
the article and country of origin. |
|
Through Bill of Lading |
A single bill of
lading covering receipt of the cargo at the point of
origin for delivery to the ultimate consignee, using two
or more modes of transportation. |
|
TIB |
The Temporary
Importation Bond (TIB) procedures allow importers to
enter merchandise that will be exported within one year
from importation for temporary use without paying
duties. Merchandise entered under a TIB cannot be sold
but can be repaired, altered or processed. |
|
Trade Name |
Name by which a
commodity is commonly known in a trade; a name used as a
trademark. |
|
Trademark |
A symbol, design,
word, letter, etc., used by a manufacturer or dealer to
distinguish his products from those of competitors and
usually registered and protected by law. |
|
Trailer |
Vehicle without
motor power designed to be drawn by another vehicle and
so constructed that no part of its weight rests upon the
towing vehicle. |
|
Transaction Value |
Transaction Value
is the price actually paid or payable for the imported
goods, with additions made for any dutiable items not
included, or deductions made for any non-dutiable items
included. |
|
Transfer Pricing |
Overpricing of
imports and/or under-pricing of exports between
affiliated companies in different countries for the
purpose of transferring profits, revenues or monies out
of a country in order to evade taxes. |
|
Transship |
Cargo which is
transferred from one vessel to another. |
|
TSCA |
The Toxic
Substances Control Act is intended to protect human
health and the environment from unreasonable risks of
certain chemicals. The EPA and U.S. Customs Service are
responsible for keeping chemicals that have not
undergone risk screening out of the United States. |
|
TWEA |
Trading with the
Enemy Act |
|
UCP 500 |
Uniform Customs
and Practice for Documentary Credits |
|
Ultimate Consignee |
The ultimate
consignee is the person located abroad who is the true
party in interest, receiving the export for the
designated end-use. |
|
Ultimate Purchaser |
The ultimate purchaser is generally
the last person in the United States who will receive
the article in the form in which it was imported. |
|
URAA |
Uruguay Round
Agreements Act |
|
USITC |
U.S. International
Trade Commission |
|
USTR |
United States
Trade Representative |
|
Value Added Fee |
This method of
pricing offers a base entry fee with extra charges for
additional classifications, additional invoices,
issuance of delivery orders, freight tracking, phone and
fax charges and other miscellaneous services. |
|
Visa ** |
A visa is an
endorsement in the form of a stamp on an invoice and
consists of a stamped authorization that is usually
circular, square, or rectangular in shape. The visa
number normally consists of a standard nine digit
number. * Click here for more on a textile visa. |
|
War Risk |
Insurance coverage
for loss of goods resulting from any act of war. |
|
Wharfage |
A charge assessed
by a pier or dock owner for handling incoming or
outgoing cargo. |
|
WTO |
World Trade
Organization |
