| Ipsa Scientia Potestas Est |
 |
| |
 |
| |
 |
| |
 |
| |
 |
| FREIGHT STATUS |
| Knowledge is Power |
ABI (see Automated Broker Interface)
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
A duty imposed on imported merchandise that is based on a percentage of the shipment
value.
Air Waybill
A non-negotiable bill of lading / document or contract for both domestic and 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 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
Antidumping Duties
A special duty tariff placed on imported merchandise that would otherwise be sold for less
than fair market value causing harm to the domestic industry. To discourage sale of
foreign goods at less than a fair market price that would be detrimental to local
manufacturers.. To help maintain the domestic market's competitiveness. See Dumping.
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
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. Artwork performed in the U.S. is not considered an assist. The value of the
imported merchandise must reflect this added value.
ATA Carnet
A Carnet is a form issued by the United States Council for International Business
specifically designed for freight or cargo that will only be in a country for a temporary period
of time. It is similar to a passport in that it simplifies the importing process. One example
use of an ATA Carnet would be for International Show Horses that travel from country to
country on a regular basis. This method prevents the client from paying duties or posting
bonds.
ATPA
Andean Trade Preferences Act
Automated Broker Interface (ABI)
A software interface to the Customs Automated Commercial System allowing
transmission on entry data pertaining to merchandise being imported into the U.S. 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 referred to as data centers.
AWB
Air Waybill
BEET
Business Executives Enforcement Teams
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. 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.
BIS
Bureau of Industry and Security
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 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.
Bureau of Export Administration
A government office responsible for the control of exports for reasons of national security,
foreign policy and short supply items.
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
see ATA Carnet
Cartage
Movement of freight by use of 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. A signed statement as to the origin of an export item.
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
The assignment of a category for the imported goods according to the Harmonized Tariff
Schedule 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. Duty is determined based on the classification and the valuation of the
goods.
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.
Countervailing Duties
Special additional duties imposed on imports to offset the benefits of subsidies paid to
producers or exporters in the exporting country, that could harm a domestic industry.
Country of Origin
The country that produced the imported goods.
Customs
The United States Customs Service which is the regulatory division of government in
charge of regulating and enforcing import laws.
Customs Broker
A US Customs Broker is a highly-trained individual, licenced and entrusted by the US
Department of Treasury. Customs brokers not only have to be constantly attentive to US
Customs regulations and laws, but are also responsible for accurate classification of
imported items within thousands of categories. They are also required to collect and pay
the appropriate tariff or duty on shipped items.
Customs Modernization Act
Federal legislation that imposes extensive compliance and record-keeping requirements
on importers.
Customs Territory
Includes the States, the District of Columbia and Puerto Rico
Date of Exportation
The actual date the merchandise leaves the country of exportation for the U.S.
DCS
Destination Control Statement
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.
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.
Distributor
A foreign company or person who sells directly for a supplier and keeps an inventory of the
supplier’s products on hand.
DOC
Department of Commerce
Dock Receipt
A document used to transfer accountability of cargo from the domestic carrier to the
international carrier as 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
A material that is grown, produced, or manufactured in the US on which all IRS taxes have
been paid or has been imported and duty and tax has been paid.
DOS
Department of State
DPL
Denied Persons List
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
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
A tax levied by the government on imported merchandise, 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 and classification.
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
Entry
The process of getting imported merchandise released from the Customs Service.
EPCI
Enhanced Proliferation Control Initiative
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 U.S. government authorizing the export of commodities for
which written export authorization is required by law.
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.
FTAA
Free Trade Area of the Americas
FTSR
Foreign Trade Statistics Regulations
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 / an independent business which assembles, collects and consolidates less-
than-truckload freight. Also acting as an agent in the transshipping of freight to or from
foreign countries and may handle the foreign export clearance of imported merchandise
into the United States. A freight forwarder can not conduct US Customs business.
GATS
General Agreement on Trade in Services
GATT
General Agreement on Tariffs and Trade
GDP
Gross Domestic Product
Gross Weight
The full weight of a shipment, including goods and packaging.
GSP
Generalized System of Preferences
Harmonized Tariff Schedule of the United States
(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. It is the legal
list issued by the U.S. Government used to determine the classification of imported
merchandise.
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.
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
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
LCL
Less than container load
Letter of Credit L/C
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
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.
Maquiladora
A program designed and promoted by the Mexican government that allows foreign
manufacturers to ship components into Mexico duty-free for assembly and subsequent re-
export.
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 (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. Letters, numbers and other symbols placed on cargo packages to
facilitate identification.
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
The North American Free Trade Agreement agreed to by the U.S.A., Canada, and Mexico.
NAFTA eliminates certain tariffs, promotes market access, and facilitates customs
administration. It exceeds 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 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.
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.
Piggyback
The transportation of truck trailers and containers on specially equipped railroad flat-cars
PO
Purchase Order
Port of Entry
The port where foreign goods are entered into the receiving country, where the Customs
Service accepts entries of merchandise and collects duties.
Port of Import First port within the Customs territory where imported merchandise arrives.
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
A “protest” is the method primarily used by importers to take issue with Customs
decisions with which they disagree. The means to challenge through administrative or
agency channels decisions by the Customs Service. 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
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,
- A 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.
SIC Standard Industrial Classification
A standard numerical code system used by the U.S. Government to classify products and
services.
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. It must be posted with the Customs Service
to cover potential penalties, duties, or taxes before imported merchandise can be entered
into the United States.
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 by the buyer to the seller for the
imported goods when sold for exportation to the United States. Additions made for any
dutiable items not included, or deductions made for any non-dutiable items included.
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.
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
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 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. 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.
War Risk
Insurance coverage for loss of goods resulting from any act of war.
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.
Wharfage
A charge assessed by a pier or dock owner for handling incoming or outgoing cargo.
WTO
World Trade Organization
***************************************************************************************************
| TRACKING & CUSTOMIZED INTERFACE |
=============================================================
Tel : 516 632-8941
| Fax : 516 214-8097 |
WILLIAM J. PIONTEK, CHB
| A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z |
=============================================================
