Resources
Clear definitions for the customs, tariff, classification, and compliance terms used across global trade — organized by topic for quick reference.
165 terms · 15 topics
| # | Term | Definition |
|---|---|---|
| 1 | Customs | The government authority responsible for controlling goods entering or leaving a country and enforcing applicable customs laws, duties, and trade regulations. |
| 2 | Customs Clearance | The process of completing required customs declarations, documentation, inspections, and payments so goods can legally enter or leave a country. |
| 3 | Import | The act of bringing goods into a country or customs territory from another country. |
| 4 | Importer of Record (IOR) | The party legally responsible for ensuring that an import transaction complies with applicable customs requirements and that duties and other obligations are satisfied. |
| 5 | Import Entry | A formal declaration submitted to customs containing information about imported goods and the transaction. |
| 6 | Entry Summary | A customs filing containing information used to determine the classification, value, duties, and other requirements applicable to imported goods. |
| 7 | Customs Declaration | A statement submitted to customs describing imported or exported goods and providing information required for customs processing. |
| 8 | Customs Duty | A government charge imposed on certain imported goods, generally based on factors such as classification, value, or quantity. |
| 9 | Customs Release | Authorization from customs allowing goods to proceed after applicable requirements have been satisfied. |
| 10 | Customs Hold | A temporary restriction preventing goods from being released while customs conducts additional review, examination, or requests information. |
| 11 | Customs Examination | An inspection of goods, documents, or both by customs authorities to verify compliance with applicable requirements. |
| 12 | Customs Bond | A financial guarantee that certain customs obligations will be fulfilled. |
| 13 | Customs Territory | The geographic area in which a country's customs laws and procedures apply. |
| 14 | De Minimis Threshold | A value threshold below which certain imported shipments may qualify for simplified customs treatment or duty and tax relief, depending on the jurisdiction. |
| 15 | Customs Liquidation | The final determination by customs of an entry, including the classification, value, and duties owed where applicable. |
HS classification is foundational to international trade because the Harmonized System provides a standardized six-digit structure used globally, while individual countries can add additional digits for their national tariff systems.
| # | Term | Definition |
|---|---|---|
| 16 | Harmonized System (HS) | An internationally standardized system for classifying traded products using numerical codes. |
| 17 | HS Code | A numerical code used to classify goods under the Harmonized System for customs, tariff, and statistical purposes. |
| 18 | HS Heading | The four-digit level of the Harmonized System that identifies a broad category of products. |
| 19 | HS Subheading | The six-digit HS level used to identify a more specific category of traded goods. |
| 20 | HTS - Harmonized Tariff Schedule | A national tariff classification system used by the United States to classify imported merchandise and determine applicable tariff treatment. |
| 21 | HTS Code | A U.S. tariff classification number based on the Harmonized System and extended to provide additional national-level detail. |
| 22 | Schedule B | The U.S. export classification system used to classify goods for statistical export reporting. |
| 23 | Tariff Classification | The process of determining the appropriate tariff code for a product based on its characteristics and applicable classification rules. |
| 24 | Product Classification | The process of assigning a product to the appropriate customs or tariff classification. |
| 25 | General Rules of Interpretation (GRI) | Rules used to determine the correct classification of goods under the Harmonized System. |
| 26 | Classification Ruling | An official customs decision determining how a particular product should be classified. |
| 27 | Binding Ruling | An official customs determination that provides a formal decision on how specified goods or transactions should be treated. |
| 28 | Commodity Code | A numerical code used by customs or statistical authorities to identify a category of traded goods. |
| 29 | Tariff Schedule | A structured list of product classifications and the tariff rates or other treatment associated with them. |
| 30 | Tariff Engineering | Designing or configuring a product, where legally permissible, to qualify for a more favorable tariff classification. |
| # | Term | Definition |
|---|---|---|
| 31 | Tariff | A government-imposed charge or duty on imported goods. |
| 32 | Tariff Rate | The rate used to calculate the duty applicable to an imported product. |
| 33 | Ad Valorem Duty | A duty calculated as a percentage of the customs value of imported goods. |
| 34 | Specific Duty | A duty calculated using a fixed amount based on a unit of measurement, such as weight, quantity, or volume. |
| 35 | Compound Duty | A duty calculated using both an ad valorem rate and a specific duty component. |
| 36 | Most-Favored-Nation (MFN) Rate | The standard non-preferential tariff rate applied to eligible trading partners under applicable WTO rules. |
| 37 | Preferential Tariff | A reduced tariff rate available to qualifying goods under a trade agreement or preference program. |
| 38 | Tariff Preference | A tariff benefit that provides eligible goods with a lower duty rate than the standard applicable rate. |
| 39 | Tariff Quota | A system allowing a specified quantity of goods to enter at a lower tariff rate, with a higher rate applying after the quota is reached. |
| 40 | Duty Rate | The percentage, fixed amount, or other rate used to calculate customs duty on imported goods. |
| 41 | Duty-Free | Describes goods that qualify for importation without payment of a particular customs duty. |
| 42 | Additional Duty | A duty imposed in addition to an otherwise applicable customs duty, often under a trade remedy or special tariff measure. |
| 43 | Landed Cost | The total cost of obtaining goods at their destination, including applicable transportation, duties, taxes, insurance, brokerage, and related costs. |
| 44 | Duty Drawback | A mechanism that allows eligible businesses to recover certain duties, taxes, or fees previously paid on imported goods when specified conditions are met. |
Customs valuation is used to determine the customs value of imported goods. Under the WTO framework, valuation should use fair and predictable methods rather than arbitrary or fictitious values.
| # | Term | Definition |
|---|---|---|
| 45 | Customs Valuation | The process of determining the customs value of imported goods for purposes such as calculating duties. |
| 46 | Customs Value | The value assigned to imported goods for customs purposes. |
| 47 | Transaction Value | The price actually paid or payable for imported goods, subject to applicable customs valuation adjustments and conditions. |
| 48 | Related-Party Transaction | An import transaction involving parties whose relationship may affect the price used for customs valuation. |
| 49 | Assists | Certain goods, materials, services, or other items supplied by the buyer at reduced or no cost for use in producing imported merchandise that may need to be included in customs value. |
| 50 | First Sale Rule | A customs valuation approach that may allow qualifying importers to use the price from an earlier sale in a multi-tier transaction when applicable requirements are satisfied. |
| 51 | Transfer Pricing | The pricing of transactions between related companies, which can affect customs valuation when goods are transferred between related entities. |
| 52 | Valuation Method | A prescribed method used to determine the customs value of imported merchandise. |
| 53 | Deductive Value | A customs valuation method based on the price at which imported or identical or similar goods are sold in the importing country, subject to applicable deductions. |
Rules of origin determine the country associated with a product and can affect tariffs, trade preferences, quotas, anti-dumping measures, and other trade policies.
| # | Term | Definition |
|---|---|---|
| 54 | Rules of Origin | Rules used to determine the country of origin of goods. |
| 55 | Country of Origin | The country determined under applicable origin rules to be the source of a product. |
| 56 | Preferential Rules of Origin | Rules used to determine whether goods qualify for preferential tariff treatment under a trade agreement or preference program. |
| 57 | Non-Preferential Rules of Origin | Rules used to determine origin for purposes other than preferential tariff treatment, such as trade remedies or marking requirements. |
| 58 | Substantial Transformation | A change resulting from manufacturing or processing that causes a product to acquire a new name, character, or use under applicable origin rules. |
| 59 | Wholly Obtained Goods | Goods considered to originate entirely in a particular country because they are wholly obtained or produced there under applicable rules. |
| 60 | Change in Tariff Classification (CTC) | An origin criterion based on whether processing causes a specified change in the product's tariff classification. |
| 61 | Regional Value Content (RVC) | A calculation used under certain trade agreements to determine how much of a product's value originates within the qualifying region. |
| 62 | Certificate of Origin | A document or certification identifying the origin of goods for customs or trade-preference purposes. |
| # | Term | Definition |
|---|---|---|
| 63 | Trade Compliance | The process of ensuring that international trade activities comply with applicable customs, tariff, export-control, sanctions, and other regulations. |
| 64 | Import Compliance | The processes used to ensure that imported goods meet applicable customs, classification, valuation, origin, documentation, and regulatory requirements. |
| 65 | Export Compliance | The processes used to ensure that exports comply with applicable export-control, sanctions, licensing, documentation, and reporting requirements. |
| 66 | Reasonable Care | The standard requiring an importer to exercise appropriate diligence when providing information to customs authorities. |
| 67 | Customs Audit | A review of an organization's import records, processes, transactions, and controls to assess customs compliance. |
| 68 | Compliance Audit | A systematic examination of business activities and records to identify regulatory violations, errors, and compliance risks. |
| 69 | Voluntary Disclosure | A process through which a company proactively reports certain violations or compliance issues to a government authority, where the applicable program allows it. |
| 70 | Recordkeeping | The process of maintaining documents and data needed to demonstrate compliance with applicable trade regulations. |
| 71 | Record Retention | The requirement to preserve trade and customs records for a specified period under applicable regulations. |
BIS terminology is particularly important here. Under the EAR, items on the Commerce Control List are identified by ECCNs, while items subject to the EAR but not specifically listed on the CCL are generally designated EAR99.
| # | Term | Definition |
|---|---|---|
| 72 | Export Control | Government restrictions governing the export, reexport, transfer, or release of specified goods, technology, software, or services. |
| 73 | EAR - Export Administration Regulations | U.S. regulations administered by BIS governing exports and certain reexports and transfers of items subject to the EAR. |
| 74 | ECCN - Export Control Classification Number | An alphanumeric designation used to identify certain items listed on the Commerce Control List. |
| 75 | EAR99 | A designation for items subject to the EAR that are not specifically described by an ECCN on the Commerce Control List. |
| 76 | CCL - Commerce Control List | The U.S. list maintained by BIS identifying items subject to specific export controls. |
| 77 | ITAR - International Traffic in Arms Regulations | U.S. regulations controlling the export and temporary import of defense articles and defense services. |
| 78 | USML - U.S. Munitions List | A list identifying defense articles and services subject to ITAR controls. |
| 79 | Export License | Government authorization permitting an export or other controlled transaction under specified conditions. |
| 80 | License Exception | An authorization allowing certain exports or reexports without obtaining an individual export license when specified conditions are satisfied. |
| 81 | NLR - No License Required | A designation indicating that a particular export does not require a specific license under the applicable circumstances. |
| 82 | Reexport | The shipment, transmission, or transfer of an item subject to U.S. export controls from one foreign country to another. |
| 83 | Deemed Export | Under U.S. export-control rules, a release of controlled technology or source code to a foreign person in the United States that is treated as an export. |
OFAC maintains multiple sanctions lists, including the SDN List. Importantly, sanctions exposure is not limited to entities literally appearing on a list; OFAC's 50 Percent Rule can also apply to entities owned 50% or more, directly or indirectly, by blocked persons.
| # | Term | Definition |
|---|---|---|
| 84 | Economic Sanctions | Government restrictions designed to limit trade, financial activity, or other dealings with specified countries, entities, individuals, or activities. |
| 85 | Trade Sanctions | Restrictions imposed by governments on certain international trade transactions or commercial relationships. |
| 86 | OFAC - Office of Foreign Assets Control | A U.S. Treasury office responsible for administering and enforcing U.S. economic and trade sanctions. |
| 87 | SDN List - Specially Designated Nationals and Blocked Persons List | An OFAC list identifying individuals and entities subject to blocking sanctions or other restrictions. |
| 88 | Restricted Party List | A government or regulatory list identifying individuals or entities subject to specific trade restrictions. |
| 89 | Restricted Party Screening (RPS) | The process of checking transaction parties against applicable government restricted-party and sanctions lists. |
| 90 | Sanctions Screening | Screening customers, suppliers, intermediaries, and other parties against applicable sanctions lists and restrictions. |
| 91 | Transaction Screening | Evaluating a transaction against applicable restrictions involving parties, destinations, products, end uses, or other risk factors. |
| 92 | 50 Percent Rule | An OFAC rule under which entities owned, directly or indirectly, 50% or more in aggregate by blocked persons are generally treated as blocked. |
| 93 | Blocked Person | An individual or entity whose property or interests in property are blocked under applicable U.S. sanctions. |
| # | Term | Definition |
|---|---|---|
| 94 | Commercial Invoice | A document identifying the seller, buyer, goods, quantities, values, and transaction details for an international shipment. |
| 95 | Pro Forma Invoice | A preliminary invoice describing a proposed transaction before the final commercial invoice is issued. |
| 96 | Packing List | A document describing the contents, quantities, packaging, dimensions, and other physical details of a shipment. |
| 97 | Bill of Lading (BOL) | A transportation document containing information about goods shipped by sea, land, or another mode and the parties involved. |
| 98 | Air Waybill (AWB) | A transportation document used for goods transported by air. |
| 99 | Certificate of Origin (COO) | A document or certification identifying the country of origin of exported goods. |
| 100 | Import License | Government authorization required for importing certain goods into a country. |
| 101 | Export License | Government authorization required for exporting certain controlled goods, technologies, software, or services. |
| 102 | Shipper's Letter of Instruction (SLI) | Instructions from an exporter to a freight forwarder concerning the handling and reporting of an export shipment. |
| 103 | Import Declaration | A formal declaration submitted to customs providing information about goods entering a country. |
| 104 | Export Declaration | A formal declaration providing customs or government authorities with information about goods being exported. |
| 105 | Power of Attorney (POA) | A legal authorization allowing another party, such as a customs broker, to act on behalf of an importer or exporter. |
CBP's customs broker framework covers areas including entry, valuation, classification, trade agreements, broker compliance, powers of attorney, drawback, bonds, FTZs, and warehouse entries.
| # | Term | Definition |
|---|---|---|
| 106 | Customs Broker | A licensed or authorized professional or company that helps importers and exporters complete customs transactions and meet applicable requirements. |
| 107 | Customs Brokerage | The business of assisting clients with customs declarations, entry processing, documentation, classification, duties, and related compliance activities. |
| 108 | Licensed Customs Broker | A customs broker authorized by the relevant government authority to perform regulated customs brokerage activities. |
| 109 | Broker of Record | The customs broker formally designated to handle customs transactions for an importer. |
| 110 | Customs Broker Power of Attorney | An authorization allowing a customs broker to act on behalf of an importer or other principal in customs matters. |
| 111 | Broker Compliance | Processes and controls used by customs brokers to ensure that brokerage activities and filings comply with applicable regulations. |
| 112 | Entry Processing | The preparation, review, submission, and management of customs entries. |
| 113 | Customs Entry Filing | The submission of required customs information to obtain clearance and determine applicable duties and requirements. |
| 114 | Customs Brokerage Automation | The use of software and automated workflows to reduce manual work in customs brokerage operations. |
Trade agreements can provide preferential tariff treatment when products meet applicable origin and other requirements. For example, the U.S. FTA tariff tool uses the product's HS code and applicable rules of origin to determine potential preferential treatment.
| # | Term | Definition |
|---|---|---|
| 115 | Free Trade Agreement (FTA) | An agreement between countries that establishes preferential rules for trade, often including reduced or eliminated tariffs for qualifying goods. |
| 116 | Trade Agreement | A formal arrangement between countries governing aspects of international trade, including tariffs, market access, and trade rules. |
| 117 | Preferential Trade Agreement (PTA) | An agreement providing participating countries with preferential trade treatment for qualifying products. |
| 118 | Preferential Tariff Treatment | A reduced or zero tariff rate available to qualifying goods under a trade agreement or preference program. |
| 119 | USMCA - United States-Mexico-Canada Agreement | A trade agreement governing preferential trade among the United States, Mexico, and Canada. |
| 120 | FTA Certificate of Origin | A certification used to support a claim that goods qualify for preferential treatment under a particular trade agreement. |
| 121 | Rules of Origin Qualification | The process of determining whether a product satisfies the origin requirements necessary to receive preferential tariff treatment. |
| 122 | Tariff Preference Claim | A claim made by an importer or other eligible party to receive a reduced tariff rate under an applicable preference program. |
| # | Term | Definition |
|---|---|---|
| 123 | Foreign-Trade Zone (FTZ) | A designated area where qualifying merchandise can receive special customs treatment before entering domestic commerce. |
| 124 | Customs Bonded Warehouse | A secured facility where imported goods may be stored under customs control before duties are paid or other customs procedures are completed. |
| 125 | Bonded Warehouse | A warehouse authorized to hold imported merchandise under customs control subject to applicable requirements. |
| 126 | Duty Drawback | A program allowing eligible parties to recover certain duties, taxes, or fees previously paid on qualifying imported goods. |
| 127 | Temporary Importation | A customs procedure allowing eligible goods to enter a country temporarily under specified conditions, often with relief from duties. |
| 128 | Temporary Admission | A customs procedure allowing qualifying goods to enter a customs territory temporarily with conditional relief from duties and taxes. |
| 129 | ATA Carnet | An international customs document used for qualifying temporary imports and exports, generally allowing goods to move temporarily without payment of certain duties and taxes. |
| 130 | General Order (GO) | A customs procedure for merchandise that has not been entered or cleared within the required timeframe. |
| 131 | Customs Warehousing | A procedure allowing imported goods to be stored under customs control while customs obligations remain pending. |
Trade remedies sit between ordinary tariff classification and broader trade policy. WTO materials identify anti-dumping, countervailing measures, and safeguards as the three major contingent trade-protection mechanisms.
| # | Term | Definition |
|---|---|---|
| 132 | Trade Remedy | A government measure used to address certain harmful or unfair effects of imported goods on domestic industries. |
| 133 | Anti-Dumping Duty (AD) | An additional duty imposed on qualifying imports when authorities determine that dumped imports are causing or threatening injury to a domestic industry. |
| 134 | Countervailing Duty (CVD) | A duty imposed to offset certain government subsidies benefiting imported products when applicable legal requirements are met. |
| 135 | Safeguard Measure | A temporary trade measure used to protect a domestic industry from serious injury caused or threatened by increased imports. |
| 136 | Dumping | The practice of exporting a product at a price considered unfairly low relative to applicable comparison values under anti-dumping rules. |
| 137 | Anti-Dumping Investigation | A government investigation to determine whether imported goods are being dumped and causing injury to a domestic industry. |
| 138 | Countervailing Duty Investigation | An investigation into whether imported goods benefit from actionable subsidies and cause injury to a domestic industry. |
| 139 | Section 301 Tariff | A U.S. additional tariff or other trade measure imposed under Section 301 of the Trade Act of 1974. |
| 140 | Section 232 Tariff | A U.S. trade measure imposed under Section 232 of the Trade Expansion Act based on national-security considerations. |
Technology and automation terms commonly used in modern trade compliance operations, including software, workflows, and customs process automation.
| # | Term | Definition |
|---|---|---|
| 141 | Trade Compliance Software | Software designed to help businesses manage customs, import, export, sanctions, classification, documentation, and other trade compliance activities. |
| 142 | Trade Compliance Automation | The use of technology to automate repetitive trade compliance tasks, validations, workflows, and controls. |
| 143 | Customs Automation | The use of software and automated processes to manage customs-related activities and reduce manual processing. |
| 144 | Customs Broker Software | Software designed to help customs brokers manage entry processing, documentation, classification, compliance, and brokerage workflows. |
| 145 | Customs Entry Automation | The automation of activities involved in preparing, validating, submitting, and managing customs entries. |
| 146 | Automated Classification | The use of rules, software, databases, or AI-assisted systems to help assign appropriate tariff classifications to products. |
| 147 | Product Classification Software | Software that helps businesses research, manage, validate, and maintain product tariff classifications. |
| 148 | Trade Compliance Workflow | A defined sequence of tasks, approvals, validations, and decisions used to manage a trade compliance process. |
| 149 | Trade Compliance Management System | A technology system used to centralize and manage trade compliance data, processes, controls, and documentation. |
| 150 | Customs Document Automation | The automated generation, extraction, validation, or processing of documents used in customs transactions. |
| # | Term | Definition |
|---|---|---|
| 151 | Incoterms | Standardized international trade terms published by the International Chamber of Commerce that define key responsibilities, costs, and risks between buyers and sellers. |
| 152 | EXW - Ex Works | An Incoterm under which the seller makes goods available at a specified location and the buyer assumes most transportation responsibilities. |
| 153 | FCA - Free Carrier | An Incoterm under which the seller delivers goods to a carrier or another party at an agreed location. |
| 154 | FAS - Free Alongside Ship | An Incoterm under which the seller delivers goods alongside the vessel at the named port of shipment. |
| 155 | FOB - Free on Board | An Incoterm under which the seller delivers goods on board the vessel at the named port of shipment. |
| 156 | CFR - Cost and Freight | An Incoterm under which the seller pays the cost and freight required to bring goods to the named destination port. |
| 157 | CIF - Cost, Insurance and Freight | An Incoterm under which the seller pays transportation and specified insurance costs to the named destination port. |
| 158 | CPT - Carriage Paid To | An Incoterm under which the seller pays for carriage to the agreed destination. |
| 159 | CIP - Carriage and Insurance Paid To | An Incoterm under which the seller arranges carriage and insurance to the named destination. |
| 160 | DAP - Delivered at Place | An Incoterm under which the seller delivers goods to an agreed destination ready for unloading. |
| 161 | DPU - Delivered at Place Unloaded | An Incoterm under which the seller delivers and unloads goods at the agreed destination. |
| 162 | DDP - Delivered Duty Paid | An Incoterm under which the seller takes responsibility for delivery and import-related obligations specified under DDP, including duties and taxes. |
| 163 | Freight Forwarder | A company or intermediary that arranges transportation and related logistics services for shipments. |
| 164 | Air Freight | The transportation of goods by aircraft. |
| 165 | Ocean Freight | The transportation of goods by sea, typically using containerized or bulk shipping. |
