Trade & Customs Glossary

A tariff calculated as a percentage of the value of the imported goods.

An additional tariff imposed on imported goods that are sold in the US at a price below their fair market value in the exporting country.

A legal document issued by a carrier to a shipper that details the type, quantity, and destination of goods being carried.

An official determination by CBP on the tariff classification, valuation, or country of origin of a specific product, binding on all CBP ports.

A secured warehouse where imported goods can be stored without payment of duty until they are released for domestic consumption or re-exported.

An Incoterm where the seller pays the costs and freight to deliver goods to the port of destination, including insurance.

A document certifying the country in which goods were manufactured or produced, often required to claim preferential tariff rates.

The general duty rate applied to imports from countries with Most Favored Nation (MFN) or Normal Trade Relations (NTR) status.

Higher tariff rates applied to imports from countries that do not have Normal Trade Relations with the United States.

A document provided by the exporter to the importer that describes the goods, their value, and the terms of sale.

A tariff that combines both an ad valorem rate (percentage) and a specific rate (fixed amount per unit).

An additional tariff imposed to offset the effect of subsidies provided by foreign governments to their exporters.

The country where goods were wholly obtained, produced, or substantially transformed.

A financial guarantee ensuring that all duties, taxes, and fees owed to US Customs will be paid.

A licensed professional who assists importers and exporters in meeting government requirements governing imports and exports.

The value of imported goods used to calculate the amount of duty owed, typically based on the transaction value (price actually paid).

The threshold value below which no duties or taxes are collected on imported goods. For the US, this is generally $800.

A refund of duties, taxes, or fees paid on imported goods that are subsequently exported or used in the manufacture of exported goods.

The refund of customs duties paid on imported materials that are later exported, either directly or as part of manufactured goods.

CBP Form 7501 — the official document filed with US Customs that provides details about imported goods for duty assessment.

A tax on specific goods (like alcohol, tobacco, fuel) charged in addition to customs duties upon import.

An Incoterm where the seller delivers goods on board a vessel at the named port of shipment, after which risk transfers to the buyer.

A designated area within the US where goods may be imported, stored, and processed without being subject to customs duties until they enter US commerc...

A treaty between two or more countries that reduces or eliminates tariffs and other trade barriers on goods traded between them.

A company that arranges the transportation and logistics of goods for importers and exporters.

The standard tariff rate applied to imports from most countries under Normal Trade Relations, listed in Column 1 of the HTS.

A US trade program that provides duty-free treatment for certain products from eligible developing countries.

A specific 8-10 digit classification number in the Harmonized Tariff Schedule that identifies a product and its applicable tariff rate.

A fee assessed on cargo shipped through US ports, currently 0.125% of the value of the cargo.

An international standardized system of names and numbers to classify traded products, maintained by the World Customs Organization.

The US-specific classification system (HTS) that assigns tariff rates to all imported goods, based on the international Harmonized System.

Also known as '10+2', a requirement for importers to provide advance cargo information to CBP for ocean shipments before loading.

The entity responsible for ensuring that imported goods comply with all applicable laws and regulations and for paying all duties and fees.

International Commercial Terms — standardized trade terms published by the ICC that define the responsibilities of buyers and sellers in international...

The total cost of a product delivered to the buyer's door, including product cost, shipping, insurance, customs duties, and other fees.

A fee charged by CBP on most imported goods, calculated as a percentage of the goods' value (0.3464%), with minimum and maximum caps.

Trade status granted to WTO members ensuring they receive the lowest tariff rates (Column 1 General) that the US offers to any trading partner.

The US term for Most Favored Nation status, granting countries access to Column 1 general tariff rates.

A document listing the contents, weight, and dimensions of each package in a shipment.

A reduced tariff rate granted to imports from specific countries under free trade agreements or preferential trade programs.

A limit on the quantity or value of a specific product that can be imported during a given period.

Criteria used to determine the national source of a product, critical for determining eligibility for preferential tariff rates.

A US trade law provision allowing the President to impose temporary tariffs or other measures to protect domestic industries from import surges.

A US trade law provision allowing the President to impose tariffs or restrictions on imports that threaten national security.

A US trade law provision allowing the President to impose tariffs on countries engaged in unfair trade practices. Used for the China tariffs.

A provision allowing goods valued at $800 or less to enter the US duty-free, also known as the de minimis exemption.

A tariff calculated as a fixed dollar amount per unit of quantity (e.g., $2.50 per kilogram) regardless of the goods' value.

The test used to determine country of origin — whether manufacturing processes changed the goods into a new and different article of commerce.

The process of determining the correct HTS code for an imported product, which determines the applicable duty rate.

The legal practice of modifying products or import procedures to qualify for lower tariff rates.

A two-tiered tariff system where a lower rate applies within a specified quantity limit, and a higher rate applies to imports exceeding that limit.

A customs entry allowing goods to be imported duty-free for a limited time for purposes like display, testing, or repair, provided they are subsequent...

Measures aimed at simplifying, harmonizing, and standardizing international trade procedures to reduce costs and improve efficiency.

The primary method for determining customs value — the price actually paid or payable for goods when sold for export to the US.

The United States-Mexico-Canada Agreement, the trade agreement that replaced NAFTA in 2020, governing trilateral trade in North America.

A consumption tax levied on the value added at each stage of production or distribution, used in most countries outside the US.

The process of determining the customs value of imported goods for the purpose of calculating duties.

The intergovernmental body that maintains the Harmonized System used globally for classifying traded goods.