|
TERM/ACRONYM
|
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 centers. |
| 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 |
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