Various Customs Brokerage Terms

ABI (Automated Broker Interface)
Air Waybill

Bill of Lading
Bond
Bonded Terminal
Bonded Warehouse

Cargo Selectivity
Carnet
Consolidator
Country of Exportation (C/E)
Customs
Customs Declaration
Customs Broker

Demurrage
Declared Value for Customs
Drawback
Duty

Foreign Trade Zone (FTZ)

General Examination

Harmonized Code

Immediate Delivery
In Bond
Informal Entry
Intenstive Exam

Paperless Release
Port of Entry
Proforma

T&E (Transportation and Exportation)

Term:

Definition:

ABI (Automated Broker Interface)
A part of ACS (Automated Commercial System) which permits transmission of data for electronic review and release pertaining to merchandise being imported into the U.S.

Air Waybill/Bill of Lading
A document by which a carrier receipts for goods and contracts to move them. In air freight, the air waybill is a form of bill of lading and is a contract for carriage.

Bond
Regarding Customs entries, it is evidence of financial security provided to Customs for payment of duties, taxes, fees, penalities, or providing required documents. It is usually provided in the form of an insurance bond or policy. It can be obtained on a single entry or a continuous bond basis.

Bonded Terminal
An airline terminal approved by the U.S. Treasury Department for the storage of goods until Customs duties are paid or the goods are otherwise released.

Bonded Warehouse
A warehouse authorized by Customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.

Cargo Selectivity
A part of ACS (Automated Commercial System), cargo selectivity specifies the type of examination (intense or general) to be done on imported merchandise. The exam type is based on criteria assessments of risk of filer, consignee, tariff number, country of origin, and manufacturer/shipper.

Carnet
A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries (for display, demonstration or similar purposes) without paying duties or posting bonds.

Consolidator
An entity that provides service also provided by an air carrier, independent from the carrier, and derives income from package consolidation of others for tender to an air carrier. An Air Freight Forwarder performs the functions of a consolidator.

Country of Exportation (C/E)
Usually, but not necessarily, the country in which the merchandise was manufactured or produced and from which it was first exported.
For example, merchandise made in Switzerland and shipped to the United States through Frankfurt, Germany, has as the country of exportation, Switzerland.

Customs
A government authority designated to regulate the flow of goods to and from a country and to collect duties levied by a country on the import and export of goods. The term also applies to the procedures involved in such collection. In the United States, U.S. Customs encompasses both Customs and Border Protection segements of the Department of Homeland Security.

Customs Broker
A broker certified by the U.S. Bureau of Customs and Border Protection to act for importers and other business people in handling the sequence of Customs formalities and other details attendant to the legal and expeditious importing of goods. Such brokers are among the specialists who have made it easier for more business people to participate successfully in international commerce.

Customs Declaration
A written statement attesting to the correctness of description, quantity, value, etc., of merchandise offered for importation into the U.S.

Demurrage
The detention of containers by shippers or receivers of freight beyond a specified grace period. The airlines tender carrier-owned containers to the customer for loading and unloading of the unit. In the event the container is not returned to the carrier within a specified time (usually 36-48 hours) a charge shall be assessed by the carrier for each 24-hour period or fraction thereof beyond the allowed time.

Declared Value for Customs
The selling price of the contents or the replacement cost if the contents are not for resale. The amount must be equal to or greater than the declared value.

Drawback
A refund of duties paid on imported goods which is provided at the time of their re-exportation.

Duty
A tax imposed on imports by the Customs authority of a country. Duties are generally based on the value of the goods (ad valorem duties). Some other factor such as weight or quantity (specific duties) or a combination of value and other factors (compound duties).

Foreign Trade Zone (FTZ)
A port designated by the Government of a country for duty free entry of any non-prohibited goods. Merchandise may be stored, displayed, used for manufacturing, etc., within the zone and re-exported without duties being paid. Duties are imposed on the merchandise (or items manufactured from the merchandise) only when the goods pass from the zone into an area of the country subject to the Customs authority.

General Examination
A result on an entry submission through ABI that means Customs wants to review the import documents prior to release of the cargo.

Harmonized Code
A multipurpose international goods classification system designed to be used by manufacturers, transporters, exporters, importers, Customs, statisticians and other in classifying goods moving in international trade under a single commodity code. Developed by the Customs Cooperation Council(CCC), in Brussels, this code contains approximately 5,000 headings and subheadings describing the articles moving in international trade.

Immediate Delivery
A procedure allowing more rapid release to importers of imports flown into the United States each year. Under the immediate delivery program, an importer can take delivery almost immediately of virtually all of an incoming shipment. Customs retains a sample for the purpose of appraisal. On the basis of this appraisal, the importer is billed later for payment of duties.

In Bond
As applied to air freight coming into the United States, the term "In Bond" designates a procedure under U.S. Customs clearance that is postponed until the cargo reaches a pre-designated inland Customs point rather than subjecting the cargo to clearance procedures at the first United States gateway airport where the process might be more time consuming.

Informal Entry
A simplified import entry procedure accepted at the option of Customs for any noncommerical shipment (baggage) and any commerical shipment not over $1,000 in value.

Intensive Exam
This entry submission result means Customs wants to physically examine the merchandise. Inspectors do have the ability to "override" some intensive exams. Customs will move cargo from the import site to a central inspection facility. The cost of transport, unloading, reloading, and the return, are born by the importer.

Paperless Release
The result of an entry submission through ABI that indicates the merchandise is low risk from a compliant importer. The merchandise is released without a Customs official ever looking at the documents, or physically inspecting the cargo.

Port of Entry
Any space designed by act of U.S. Congress executive order of the President of the United States, or order of the U.S. Secretary of Treasury, at which a U.S. Customs officer is assigned with authority to accept entries of merchandise, to collect duties, and to enforce the various provisions of the U.S. Customs laws.

Proforma
When coupled with the title of another document, (proforma invoice, proforma manifest), it means an informal document presented in advance of the arrival or preparation of the required document in order to satisfy a Customs requirement.

T&E (Transportation and Exportation)
An entry filed to control the movement of merchandise being transported through the United States for exportation.

Term:	Definition:
ABI (Automated Broker Interface)	A part of ACS (Automated Commercial System) which permits transmission of data for electronic review and release pertaining to merchandise being imported into the U.S.
Air Waybill/Bill of Lading	A document by which a carrier receipts for goods and contracts to move them. In air freight, the air waybill is a form of bill of lading and is a contract for carriage.
Bond	Regarding Customs entries, it is evidence of financial security provided to Customs for payment of duties, taxes, fees, penalities, or providing required documents. It is usually provided in the form of an insurance bond or policy. It can be obtained on a single entry or a continuous bond basis.
Bonded Terminal	An airline terminal approved by the U.S. Treasury Department for the storage of goods until Customs duties are paid or the goods are otherwise released.
Bonded Warehouse	A warehouse authorized by Customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.
Cargo Selectivity	A part of ACS (Automated Commercial System), cargo selectivity specifies the type of examination (intense or general) to be done on imported merchandise. The exam type is based on criteria assessments of risk of filer, consignee, tariff number, country of origin, and manufacturer/shipper.
Carnet	A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries (for display, demonstration or similar purposes) without paying duties or posting bonds.
Consolidator	An entity that provides service also provided by an air carrier, independent from the carrier, and derives income from package consolidation of others for tender to an air carrier. An Air Freight Forwarder performs the functions of a consolidator.
Country of Exportation (C/E)	Usually, but not necessarily, the country in which the merchandise was manufactured or produced and from which it was first exported. For example, merchandise made in Switzerland and shipped to the United States through Frankfurt, Germany, has as the country of exportation, Switzerland.
Customs	A government authority designated to regulate the flow of goods to and from a country and to collect duties levied by a country on the import and export of goods. The term also applies to the procedures involved in such collection. In the United States, U.S. Customs encompasses both Customs and Border Protection segements of the Department of Homeland Security.
Customs Broker	A broker certified by the U.S. Bureau of Customs and Border Protection to act for importers and other business people in handling the sequence of Customs formalities and other details attendant to the legal and expeditious importing of goods. Such brokers are among the specialists who have made it easier for more business people to participate successfully in international commerce.
Customs Declaration	A written statement attesting to the correctness of description, quantity, value, etc., of merchandise offered for importation into the U.S.
Demurrage	The detention of containers by shippers or receivers of freight beyond a specified grace period. The airlines tender carrier-owned containers to the customer for loading and unloading of the unit. In the event the container is not returned to the carrier within a specified time (usually 36-48 hours) a charge shall be assessed by the carrier for each 24-hour period or fraction thereof beyond the allowed time.
Declared Value for Customs	The selling price of the contents or the replacement cost if the contents are not for resale. The amount must be equal to or greater than the declared value.
Drawback	A refund of duties paid on imported goods which is provided at the time of their re-exportation.
Duty	A tax imposed on imports by the Customs authority of a country. Duties are generally based on the value of the goods (ad valorem duties). Some other factor such as weight or quantity (specific duties) or a combination of value and other factors (compound duties).
Foreign Trade Zone (FTZ)	A port designated by the Government of a country for duty free entry of any non-prohibited goods. Merchandise may be stored, displayed, used for manufacturing, etc., within the zone and re-exported without duties being paid. Duties are imposed on the merchandise (or items manufactured from the merchandise) only when the goods pass from the zone into an area of the country subject to the Customs authority.
General Examination	A result on an entry submission through ABI that means Customs wants to review the import documents prior to release of the cargo.
Harmonized Code	A multipurpose international goods classification system designed to be used by manufacturers, transporters, exporters, importers, Customs, statisticians and other in classifying goods moving in international trade under a single commodity code. Developed by the Customs Cooperation Council(CCC), in Brussels, this code contains approximately 5,000 headings and subheadings describing the articles moving in international trade.
Immediate Delivery	A procedure allowing more rapid release to importers of imports flown into the United States each year. Under the immediate delivery program, an importer can take delivery almost immediately of virtually all of an incoming shipment. Customs retains a sample for the purpose of appraisal. On the basis of this appraisal, the importer is billed later for payment of duties.
In Bond	As applied to air freight coming into the United States, the term "In Bond" designates a procedure under U.S. Customs clearance that is postponed until the cargo reaches a pre-designated inland Customs point rather than subjecting the cargo to clearance procedures at the first United States gateway airport where the process might be more time consuming.
Informal Entry	A simplified import entry procedure accepted at the option of Customs for any noncommerical shipment (baggage) and any commerical shipment not over $1,000 in value.
Intensive Exam	This entry submission result means Customs wants to physically examine the merchandise. Inspectors do have the ability to "override" some intensive exams. Customs will move cargo from the import site to a central inspection facility. The cost of transport, unloading, reloading, and the return, are born by the importer.
Paperless Release	The result of an entry submission through ABI that indicates the merchandise is low risk from a compliant importer. The merchandise is released without a Customs official ever looking at the documents, or physically inspecting the cargo.
Port of Entry	Any space designed by act of U.S. Congress executive order of the President of the United States, or order of the U.S. Secretary of Treasury, at which a U.S. Customs officer is assigned with authority to accept entries of merchandise, to collect duties, and to enforce the various provisions of the U.S. Customs laws.
Proforma	When coupled with the title of another document, (proforma invoice, proforma manifest), it means an informal document presented in advance of the arrival or preparation of the required document in order to satisfy a Customs requirement.
T&E (Transportation and Exportation)	An entry filed to control the movement of merchandise being transported through the United States for exportation.