Ad Valorem Duty

A duty placed on imported merchandise that is based on a percentage of the shipment value.

Air Waybill

A non-negotiable document or contract for international flights between shippers and carriers. It serves as both a receipt for the shipper and a transport agreement for the carrier of the freight.

Automated Broker Interface (ABI)

A software interface to the Customs Automated Commercial System allowing transmission on entries into and through customs. Only qualified parties may use this system, and included in them are customs brokers, importers, carriers, port authorities, and independent data processing companies.

Antidumping Duties

Duties placed on imported merchandise that would otherwise be sold for less than fair market value causing harm to the domestic industry.

Appraisement

An estimation of the value of imported merchandise by a proper Customs official.

Arrival Notice

Also known as a freight bill, this notice advises the client that cargo has arrived.

 

Assists

The value or item that an importer provides to its foreign supplier or manufacturer at a reduced rate or free of charge for the express purpose of producing imported merchandise. Examples of this may include tools, dies, or molds used to produce products.  The value of the imported merchandise must reflect this added value.

Bill of Lading

A document or contract between a shipper and a transportation company that serves to declare the transportation method of the merchandise, the price point for services rendered, and the acknowledgement by both parties that goods were shipped to the proper destination.

Bureau of Export Administration

A government office responsible for the control of exports for reasons of national security, foreign policy and short supply items.

Bonded

Goods that are stored under the supervision of customs until they are cleared and all import duties are paid.

Bonded warehouse

A warehouse authorized by Customs for storing merchandise on which payment of duties is deferred until the importer pays the duties or until Customs releases the merchandise.

Cartage

Movement of freight by use of trucking, draying or carting.

Certificate of Origin

A signed statement as to the origin of an export item.

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.

Container

Single rigid, sealed, reusable metal box in which merchandise is shipped by vessel, truck or rail.

Countervailing Duties

Additional duties charged to imported goods that could harm a domestic industry.

Country of Origin

The country that produced the imported goods.

Customs

The regulatory division of government in charge of regulating and enforcing import laws.

Distributor

A foreign company or person who sells directly for a supplier and keeps an inventory of the supplier’s products on hand.

Declaration

A formal document made by the importer or his/her agent to Customs attesting to the correctness of descriptions, valuation, and classification of imported goods.

Devanning

Unloading of cargo from a container.

Dock Receipt

A document used to transfer accountability of cargo from the domestic carrier to the international carrier.

Drawback

A program that helps domestic manufacturers compete in foreign markets allowing importers to get a refund of all or part of the duties they paid on imported merchandise.

Dumping

The import and sale of merchandise by a foreign country or supplier at less than fair value. Dumping is generally recognized as an unfair practices because the practice can disrupt markets and injure producers of competitive products in an importing country.

Duty

A tax levied on imported merchandise usually based on the value of the goods or some other factors such as weight or quantity and classification.

Entry

The process of getting imported merchandise released from the Customs Service.

Export License

A document prepared by a government authority, granting the right to export a specified quantity of a commodity to a specific country. This document may be required in some countries for most or all exports and in other countries only under special circumstances. A document issued by the government authorizing the export of commodities for which written export authorization is required by law.

Foreign Trade Zone

Importers may temporarily house imported merchandise in a free trade zone before it is processed through the Customs Service. The importer does not pay duties while the merchandise is in the foreign trade zone.

Freight Forwarder

A person who arranges the shipping and export clearance of imported merchandise.

He/she generally assembles collects and consolidates less-than-truckload freight and also acts as an agent in the transshipping of freight to or from foreign countries and the clearing of freight through Customs for compensation.

Gross Weight

The full weight of a shipment, including goods and packaging.

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.

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.

Import License

A document required and issued by some national governments authorizing the importation of goods into their individual countries.

Importer of Record

The party in whose name the entry is made

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.

Liquidation

The final review and assessment of duty on imported merchandise by the Customs Service.

Marking (country of origin), Marks of Origin

The physical stamp, wording, or marking on an article or merchandise that shows in what country the article or merchandise was produced. Customs laws require marks of origin of most countries.

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.

Packing List

A list of the contents of each package you are shipping. This is generally a free-format list, however it must contain detailed and specific information of each item being shipped. You must also include weight, dimensions, and the value of each item.

Piggyback

The transportation of truck trailers and containers on specially equipped railroad flat-cars

Port of Entry

Where goods are entered and where the Customs Service accepts entries of merchandise and collects duties.

Power of Attorney

A legal document that importers give to their customs broker that allows the customs broker to conduct business with the Customs Service on the importer's behalf.

Prior Disclosure

Sometimes an importer will find it has violated a customs law before the Customs Service has discovered the violation. A prior disclosure is a voluntary report by an importer of the violation to the Customs Service. The law provides some benefits (but does not speak of the risks) to an importer who does a prior disclosure.

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

The means to challenge through administrative or agency channels decisions by the Customs Service . 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.

Quota

A decision rendered by the Customs Service on an issue or issues surrounding a particular importation of merchandise. Rulings are published and can usually be appealed to a higher administrative body or to a court of law.

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

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.

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.

Transaction Value

The price actually paid or payable by the buyer to the seller for the merchandise when sold for exportation to the United States. Transaction value is the most common method for valuing imported merchandise.

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.

Value

The value of imported merchandise as declared by the importer and as finally determined by the Customs Service.

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 license issued to an importer by a foreign government pursuant to a quota. When asking for advice from the Customs Service, are you providing the most accurate, up-to-date, information you have on the merchandise

Waybill

A document prepared by a transportation line at the point of a shipment, showing the point of origin, destination, route, consignor, consignee, description of shipment and amount charged for the transportation service, and forwarded with the shipment, or direct by mail, to the agent at the transfer point or waybill destination.