Customs Terminologies
Customs Terminologies
- Bill of entry: A document issued by customs authorities for importers or exporters to specify the type, quantity and destination of the goods being carried or shipped out; and it acts as proof of submission for custom authorities.
- Certificate of Origin: A statement signed by the exporter, and attested by a local Chamber of Commerce, indicating which country the goods are manufactured in.
- CIF: An abbreviation used in some international sales contracts, when the selling price includes all "Costs, Insurance and Freight" for the goods sold.
- Commercial Invoice: A document supplied by the shipper that provides information about the goods, including the following details:
- Full details of shipper and recipient's names and addresses
- Clear description of goods
- Quantity of each item of goods
- HS Codes
- Origin of each item
- Unit price
- Total price and currency
- Total number and type of packages
- Total gross and net weight of goods
- Shipper's signature or stamp
- Country of Origin (COO): Specifies the country where the goods were manufactured in.
- Customs Authorities: The Government agency which is responsible for the administration of customs law and the collection of duties and taxes, which also has the responsibility for application of other laws and regulations relating to the import, export, movement or storage of goods.
- Customs Broker: A licensed expert that clears imported / exported goods through customs. The broker's role includes preparation of documents and/or electronic submissions, and the calculation and payments of taxes/duties.
- Customs/Import Declaration: Any statement or action, in any form prescribed or accepted by customs, giving them the required information.
- Customs Duties: Tax levied on imported goods by the customs authorities of a country.
- Customs inspection: Authority given to customs officers to examine goods entering the country.
- Delivery order: A document from a port authority which authorizes the clearance of the goods from customs.
- Destination Country: The country that will be final destination for goods.
- Duties exemption: Goods of a certain value or type allowed by the government into the country without having to pay the regular duties that apply to those goods.
- Goods: Any natural material or equipment, animal, industrial or anything that may be classified under a tariff heading.
- Harmonized System (HS Code): The international system published by the World Customs Organization that sets out with a systemized form the goods handled in international trade.
- Import License: A local authorization issued by a specialized authority for the importation or exportation of goods subject to restriction.
- Importer code: Code issued by customs administration to a corporate entity for its customs transaction.
- Incoterms: The recognized abbreviation for International Commercial terms. Incoterms defines the responsibilities of both the seller and the buyer under the contract of sale. They are the authoritative rules when it comes to determining the allocation and split of the costs and risks between the seller and the buyer.
- Packing List: A shipping document that accompanies packages, which is usually inside the package itself. It includes the following details:
- Type and quantity of each package (carton, bag, roll, box, etc.)
- Contents of each package matching the details mentioned in a commercial invoice
- Gross and net weight of each package
- Shipper's signature or stamp
- Pro-forma Invoice: An invoice provided by a shipper prior to importing goods, informing the receiver of the kinds and quantities of goods to be sent, their value and specifications.
- Prohibited goods: Any goods that are not allowed under the provisions of any law, notices, order or system issued by a legally authorized agency, and therefore can't enter the country.
- Restricted goods: Any goods that are restricted under the provisions of any law, notices, order or system issued by a legally authorized agency, and which requires approval from the designated authorities prior to importing into a country.
- Tariff: A levy imposed by a government on imported goods based on HS Codes.
- VAT (Value Added Tax): A tax on the purchase price which the end user pays.
- Waybill: A document issued by a carrier which gives details and instructions relating to a shipment including, origin, destination, route, shipper's and recipient's details.