Customs glossary

A unique reference code for an electronic Administrative Accompanying Document (AAD) assigned by its holder's Member State Administration.

Used in Excise Movement and Control System transit of excise goods.

Duties and taxes calculated on the basis of the transactual value of goods.

The procedure by which customs have the power to settle a customs offence under national legislation.

A written decision issued by a competent authority that outlines the treatment to be provided to goods in an import/export transaction.

A written decision from His Majesty's Revenue and Customs (HMRC) that legally binds the commodity code to a specific product for a set period, typically up to three years, ensuring consistency and certainty in customs declarations.

A document used when goods are shipped by air freight that acts as a receipt for the goods being shipped, and confirms the terms and conditions of the contract of transport.

An aircraft container unit used to facilitate rapid loading and unloading of aircraft.

A protectionist tariff imposed by a government on foreign imports that it believes are priced below fair market value.

A notification from the Office of Departure to advise that the goods will be passing through that office.

An international customs document that allows a business to temporarily export or import goods for commercial purposes to and from a country without having to pay duty or value-added taxes on the good.

A customs certificate for the movement of goods and trade between the European Union (EU) and Turkey.

A system developed by US Customs and Border Protection (CBP) that allows customs brokers, self-filing importers, and other qualified parties to electronically transmit import data to CBP.

Handles the validation, processing, duty, accounting and clearance of customs declarations in the Republic of Ireland.

Is a Europe-wide system that supports the smooth export of goods out of the Union. It is an evolution of the previous Export Control System (ECS).

AES is used by EU countries’ customs administrations and the UK’s HMRC for the implementation of the Northern Ireland Protocol. It allows for the digitalisation and modernisation of export and exit formalities as required by the Union Customs Code (UCC).

A customs management system designed by the United Nations Conference on Trade and Development (UNCTAD) aimed at modernising and streamlining customs clearance processes in developing and middle-income countries. In an increasing number of countries, ASYCUDA serves as the central system for establishing single windows for international trade, developing trade portals, supporting port management training, and implementing transit and corridor management systems.

Hauling a shipment back over part of a route it has already travelled.

A bank guarantee is a financial security provided by an importer or exporterto customs authorities, assuring that any duties, taxes, or penalties owed will be paid—even if the importer fails.

A non-interest-bearing written order that binds one party to pay a fixed sum of money to another party at a future date.

A document issued by a carrier to the shipper as a contract for the carriage of goods that must be presented in order to take delivery at the destination.

A legal document that confirms the transfer of ownership of goods to another person in return for payment.

Written information on the origin of specific goods to be imported or exported that is issued by the customs authorities of EU member states.

Information issued on the classification of goods by the customs authorities of EU member states.

A legal undertaking that binds a person to customs authorities, demanding they act in accordance to acts defined under law.

Bonded goods are imported goods that are stored in a customs-controlled warehouse (bonded warehouse) without the payment of import duties, taxes, or tariffs until they are either re-exported out of the country or released for domestic consumption (after paying the necessary duties).

A bonded warehouse is a secure storage facility authorised by customs authorities where imported goods can be stored without payment of import duties and taxes until the goods are either re-exported out of the country or released for domestic consumption (after paying the necessary duties).

Where goods covered by health certificates are presented when first entering the customs territory.

Law enforcement that secures the UK border by carrying out immigration and customs controls.

A facility that checks the importation of live animals, food and the origin of animal products from countries outside the EU.

Outlines a government’s approach and operating model for safety and security controls for all imports.

More information can be found on our BTOM article.

A person or business retained to deal with customs on your behalf.

Payment made to a freight forwarder and/or broker as specified by ocean tariff or contract.

Loose, non-containerised cargo carried in a ship's hold and loaded and discharged through hatchways.

Vessels designed to carry dry or liquid bulk cargo.

Allows for the declaration of a number of low-value items in a single customs declaration.

Additional charge on the shippers to compensate for fluctuations in the price of the ship's fuel.

The buying commission does not form part of the customs value if a buying agent locates and obtains goods from a third country seller.

C88 is the name that the Single Administrative Document (SAD) receives in the United Kingdom. The purpose of this document is to ease the management of international trade operations with the EU at origin or destination.

The transportation of goods or passengers between locations in the same country by an individual or company from outside the country.

A secure holding area inside an air, sea cargo or freight forwarder's facility for storing high-value or high-tax goods.

Federal agency responsible for managing Canada’s borders. It plays a key role in protecting national security while facilitating legitimate travel and trade.

Free trade agreement between the United States, Mexico and Canada. It suceeded the North America Free Trade Agreement.

An electronic system managed by the Canada Border Services Agency (CBSA) that facilitates the reporting and monitoring of goods exported from Canada.

An EU regulatory measure that aims to create a level playing field by applying the same price to high-carbon footprint goods imported into the EU as to domestic products.

More information can be found on our 360Customs knowledge hub.

An Incoterm (International Commercial Term) that defines the responsibilities of the seller and buyer in the shipping process. The CIP means that the seller is responsible for arranging and paying for the transportation of the goods to a named destination, including insurance coverage against the buyer’s risk of loss or damage during transit

An Incoterm that specifies that the seller is responsible for arranging and paying the cost of transporting goods to a named destination

A payment method where the seller ships goods to a buyer and provides the shipping documents (such as the bill of lading, invoice, and packing list) to a bank.

A payment method where the recipient (importer or consignee) pay for the goods and/or shipping charges at the time of delivery. This may include customs duties, taxes and any additional clearance fees.

Canada Border and Services Agency (CBSA) digital initiative. An official system of record for the collection of duties and taxes for commercial goods imported into Canada.

More information can be found our our CARM article.

An essential document that certifies the country of origin of a specific product being exported.

The customs procedure which covers imported goods that enter into free circulation within the customs territory.

Unique number used by customs authorities to identify an importer, exporter or manufacturer.

Customs declaration required for postal items that contain goods being sent internationally to help customs authorities determine item value (up to €425) and assess applicable duties or taxes.

Used to declare items being sent internationally, providing details such as the nature of the goods, their value (over €425) and other relevant shipping information.

Freight charges that are payable to the carrier at the port of discharge or final destination.

Used by the EU to classify goods for customs and trade purposes. It combines the Harmonised System codes from the World Customs Organisation with additional EU-specific subdivisions.

A code that determines which taxes and regulations apply to goods.

A business that provides transportation services to the general public under the authority of a regulatory body.

Standardised set of customs duties applied uniformly by all member countries of a customs union on goods imported from outside the union.

A customs procedure that allows goods to move between different countries under a standardised system without being subject to full customs duties and import taxes.

An international agreement that simplifies and standardises customs transit procedures for the movement of goods between member countries, without the need for customs duties or checks at each border crossing.

Lays down and defines the legislation applicable to the import and export of goods between the EU and non-member countries.

A port community system identity or port badge provided by a Community System Provider such as Descartes’ Pendant.

Relates to inward/outward processing relief.

An agreement to cover a customs debt to guarantee the duty payment.

The person responsible for the overall management and direction of the customs service.

A person entitled to receive goods.

Document accompanying goods that are filled by the shipper. It serves as proof that a contract for carriage has been concluded and describes its contents. It also serves as a receipt when goods are picked up from the shipper and delivered to the recipient.

A person entitled to send goods.

Cargo containing shipments of two or more shippers or suppliers.

A person or firm performing a consolidation service for others. The consolidator takes advantage of lower full cargo (FCL) rates, and savings are passed on to shippers.

A document used in the context of exporting goods from the EU to prove that goods have been exported outside the EU.

Items that are subject to specific government regulations due to their nature, use, or potential impact on safety, security, health, or the environment. These goods require special permits, licenses, or authorisations for import, export, or transit. They can include weapons, firearms, medical devices, and technology or data with national security implications.

Carried out by the implementation of controls on international trade to protect endangered species of fauna and flora.

Transport document that gives information about the cargo that is being transported by road in European countries, as well as additional states in Asia and Africa.

One of the Incoterms used in international trade. Under a CIF agreement, the seller is responsible for the cost of the goods, insurance, and freight to bring the goods to the port of destination.

A customs duty imposed on imported goods to offset subsidies provided by the exporting country’s government that unfairly lower the production cost of those goods.

Where goods originate, not where they have been shipped from, but where they have been produced or manufactured.

An international customs document which covers the temporary admission of motor vehicles (private and commercial road motor vehicles) in countries where required.

The government service which is responsible for the administration of customs law and the collection of duties and taxes.

A person or business retained to deal with customs for you and submit declarations on your behalf.

One of the world's largest law enforcement organisation. This US authority integrates customs, immigration, border security, and agricultural protection into a unified border management strategy.

A person or business retained to deal with customs for you and submit declarations on your behalf.

Determines the subheadings or further subdivisions under which the goods will be classified.

A person who carries on the business of arranging for the customs clearance of goods.

Establishes the concept of simplified procedures for import and export of goods from or to non-EU countries.

Regulations that ensure that the customs rules and other applicable trade provisions are adhered to observed.

The obligation on a person and/or company to pay import or export duties under the provisions of the Community Customs Code and the Common Customs Tariff.

Any statement or action, in any form prescribed or accepted by the customs authorities, giving information or particulars required by them.

The UK's HMRC software for the electronic filing of customs declarations.

The duties laid down in the customs tariff to which goods are liable on entering or leaving the customs territory.

A unique identifier associated with a specific customs entry.

All activities which must be completed in order to comply with customs law.

Computerised operating system and interface responsible for controlling and recording all of the UK’s international trade movements. It is being phased out.

The statutory and regulatory provisions relating to the importation, exportation, movement or storage of goods.

Any breach, or attempted breach of customs law.

This is your reason for importing or exporting, expressed as either a seven digit number or a six digit number and one letter.

These warehousing, inward and outward processing and temporary importation processes all require authorisation and sometimes an evaluation of their economic impact.

An assembly consisting of a seal and a fastening which are joined together in a secure manner.

Most imports are brought into free circulation, i.e. tax paid. Alternatively, there are four customs special procedures covering transit, storage, specific use and processing.

An approval for customs supervision at a traders inland premises. This approval can be utilised with a standard full export declaration.

A geographic area, covering two or more countries, which share the same custom regulations.

A voluntary supply chain security program led by U.S. Customs and Border Protection (CBP). It was launched in 2001, following the 9/11 terrorist attacks, to strengthen international supply chains and improve U.S. border security.

A customs procedure that allows goods to be moved from one point to another within a customs territory—or across multiple territories—without paying duties, taxes, or undergoing full customs checks at each border.

The merger of two or more customs territories in a way that customs duties and non-tariff barriers are eliminated between the members of the union.

The value of goods according to the customs rules for the purpose of applying ad valorem duties.

Costs that must be added to the customs value.

Costs that can be removed from the customs value.

A designated place where imported goods are stored under Customs control without payment of import duties and taxes. Might also be called a bonded warehouse or Excise warehouse.

Allows the owner to hold imported non-Community goods in the Community and choose when he pays the duties or re-exports the goods.

An official document that provides detailed information about dangerous goods being transported. It is used by carriers, customs authorities, and emergency responders to understand the nature of the hazardous cargo and handle it safely throughout the transportation process.

Any person liable for payment of a customs debt.

Any natural or legal person who makes a Customs Declaration or in whose name such a declaration is made.

Legal capacity or authorisation of a person or entity to make a customs declaration on behalf of themselves or others when goods are imported, exported, or moved under customs procedures.

All goods leaving or entering a customs territory must be declared to the customs authorities. The declaration is a customs form completed and submitted by the importer/exporter.

A document that certifies the country of origin of a product and where the product was manufactured or produced for customs and trade purposes.

A document which must be presented to the customs authorities where the value of the imported goods exceeds EUR 20 000.

Any declaration that is required to be made or produced to the Customs authorities upon the arrival or departure of a means of transport by the person responsible or agent.

Place or location where loose or other non-containerised cargo is ungrouped for delivery.

A deferment account is a financial arrangement or facility provided by customs authorities that allows importers or customs agents to delay payment of import duties, taxes, and fees for goods being cleared through customs.

A unique reference number assigned to a business or importer that has been approved to use a deferment account with customs authorities.

An International Commercial Term (Incoterm) where the seller delivers the goods, unloaded, at a named place in the destination country, and the buyer is responsible for import customs clearance and duties.

An International Commercial Term (Incoterm)where the seller assumes maximum responsibility by delivering the goods to the buyer at the named place of destination fully cleared for import, with all duties and taxes paid.

An International Commercial Term (Incoterm) where the seller delivers the goods to a named place (usually the buyer’s premises or another agreed location) ready for unloading, and the buyer is responsible for import customs clearance and payment of duties and taxes.

A charge made by a shipping company or a port authority for failure to load or remove goods within the time allowed

The seller is responsible for arranging carriage and for delivering the goods, ready for unloading from the arriving means of transport, at the named place.

A charge that is based on the size of a container, considered accessorial and added to the base ocean freight.

Customs regime consisting in destruction of foreign goods under customs control including their reduction in the condition not suitable for use, without collection from them customs duties and taxes and application of measures of economic policy (quoting, licensing, etc.).

A customs intermediary acting in the name of, and on behalf of, another business.

The amount of import duties and taxes repaid under the drawback procedure.

When goods are exported, this customs procedure provides for a repayment (total or partial) to be made in respect of the import duties and taxes charged on the goods.

Items that can be used both for civilian and military applications. As such, these types of goods are heavily regulated.

Regulations that govern the export, transfer, and trade of goods, software, and technologies that can be used for both civilian and military applications. These controls aim to prevent the proliferation of weapons, support national security, and ensure that sensitive items do not contribute to human rights abuses or terrorism.

A mandatory unique consignment reference for all export declarations.

Charges imposed on goods as they cross international borders. They are collected by customs authorities designated by local governments and are intended to protect domestic industries, economies, and businesses.

Programs or measures that reduce, suspend, or eliminate customs duties on certain goods under specific conditions. The goal is often to support trade, manufacturing, or economic development.

An unique ID number assigned by a customs authority to businesses and individuals involved in importing or exporting goods into or out of the EU or UK.

A document required for third-country exports and accompanies the goods to the office of exit where information is received that the goods have left the country.

Data that must be filed through the Automated Export System (AES) for goods shipped from the US to a foreign country.

Goods imported into the UK receive an entry acceptance form (E2).

Allows economic operators to release goods to a customs procedure without the need to provide a full customs declaration at the point of release.

In order for the goods to even leave a country, the carrier must lodge an ENS to confirm which goods are being carried.

An indication of the time that a vehicle is expected at its destination.

Refers to when a transport system will leave its point of origin.

A regulation introduced by the EU to combat global deforestation and promote sustainable supply chains. The regulation requires companies placing certain products on the EU market to ensure that their supply chains are deforestation-free and comply with relevant local laws.

More information can be found on our 360Customs knowledge hub.

A certificate that can be used to move goods between countries of the Pan-Euro-Mediterranean cumulation.

A movement certificate used in international trade, functioning as a certificate of origin that allows goods to benefit from preferential or reduced tariff rates when trading between countries that have free trade agreements or preferential associations

Relates to a legal decision by the customs authorities on the classification of products.

Customs database to identify chemicals and classify them.

A document used if you want to send goods produced within the EU to a location outside the EU, ensuring they remain there.

A UK Government body responsible for overseeing the export of strategic goods, software, and technology to ensure they do not contribute to weapons proliferation, terrorism, or human rights abuses.

An Incoterms which means that the seller makes the goods available at their premises (e.g., a factory or warehouse), and the buyer bears all the costs and risks involved in taking the goods from there to the final destination.

The physical inspection of goods by the customs authorities to check the nature, origin, condition, quantity and value of the goods are all in accordance with the details provided in declaration form.

A tax imposed on specific goods that are produced or sold within a country.

A computerised system for recording and monitoring the movement of excise goods (alcohol, tobacco and energy products).

A maritime zone defined under the United Nations Convention on the Law of the Sea (UNCLOS).

A declaration submitted electronically to the customs authorities of the country of exit before goods are physically exported from the EU customs territory.

The customs procedure of taking community goods out of the customs territory.

Export declaration, export accompanying document.

The total quantity of goods which an exporter simultaneously exports to the same consignee via the same customs office of export.

Administers the UK's system of export controls and licensing for military and dual use items.

Export charges due against goods being exported.

A declaration utilised by the government of a country into which the goods are taken in order to collect data and to ensure compliance with its legislation.

An official document that confirms your export meets the health requirements of the destination country. Used for products of animal origin.

A government document which permits the licensee to engage in the export of designated goods to certain destinations.

An export notice, also known as proof of export, serves as an evidence of export after the formal declaration by means of an export accompanying document.

The act of taking any goods out of the customs territory.

The person and/or company on whose behalf the export declaration is made and who is also the owner of the goods or has a similar right of disposal over them.

Formerly known as an ERTS. An authorised facility for holding goods temporary until the goods are placed under a customs procedure.

The local entity or person (the fiscal representative) designated by a foreign business designates. They are responsible for complying with the country’s tax laws.

A customs accounting method used to simplify and streamline the payment and management of duties, taxes, and fees related to imports and exports. Not available everywhere. Its availability depends on the customs regulations and infrastructure of each country.

This enshrines the principle that all transactions with other countries, not expressly subject to restrictions, are permissible without restriction.

Used to proof of origin for goods being imported from countries covered by the Developing Countries Trading Scheme.

Under the free alongside ship Incoterms, seller delivers goods, cleared for export, alongside the vessel at a named port, at which point risk transfers to the buyer.

An Incoterm which means that the seller is responsible for export clearance and delivery of goods to the carrier at the named place of delivery.

Goods produced in the customs territory, or imported and released for free circulation after payment of import duties.

When there is no payment to the supplier the importer may use the pre-sold price to its customer or another method of valuation.

Items deemed to be included in the overall sale price for that consignment.

An Incoterm which means that the seller is responsible for delivering the goods on board the vessel nominated by the buyer at the named port of shipment. The seller clears the goods for export.

A formal agreement between two or more countries to promote trade and economic cooperation by reducing or eliminating barriers to trade, such as tariffs, quotas, and regulations.

A region where a group of countries agrees to reduce or eliminate trade barriers, such as tariffs and import quotas, among themselves.

Designated areas within a country where goods can be imported, stored, processed, and exported without the usual customs duties and tariffs.

A territory or premises situated where import duties and commercial policy measures are suspended for non-community goods.

A party that facilitates the shipment of goods on behalf of shippers by acting as intermediary between the shipper and various transportation services.

A shipping method where a single shipment occupies an entire container.

The six general rules used in interpreting and applying customs tariffs.

The voluntary arrangement between two or more members for seamless exchange of cross border information at a customs-to-customs level.

A statement made in the form prescribed by customs authorities, by which the persons interested indicate the customs procedure to be applied to the goods.

Goods specified by the declarant as intended for re-importation, in respect of which identification measures may be taken by the customs authorities to facilitate re-importation in the same state.

Goods which may be disposed of without customs restriction.

A unique identifier or code used in logistics and supply chain management to track and document the transfer or movement of goods within or between locations. Particularly common in the UK and some other English-speaking countries.

A UK Government border control information technology system for coordinating the movement of vehicles. It is part of the government's measures for dealing with post-Brexit trade.

Used to give proof of origin for goods being imported from countries covered by the UK Generalised Scheme of Preferences.

Undertaking by which the surety assumes obligations towards the customs.

An association which is approved to guarantee the payment of any sums legally due, under the terms of this agreement, to the customs agreements of that contracting party, and which is affiliated to a guaranteeing chain.

A guaranteeing scheme administered by an international organisation to which guaranteeing associations are affiliated.

A H2 customs declaration is mandatory when entering goods to the customs warehousing procedure.

An HS code is a standardised numerical method of classifying traded products. It's used by customs authorities around the world to:

- Identify goods when assessing duties and taxes

- Enforce trade regulations

- Collect trade statistics

More information can be found on our 360Customs knowledge hub.

The UK's tax, payments and customs authority.

An import consignment refers to a specific shipment of goods being imported into a country, typically from a single exporter or supplier to a single importer or consignee, under the same transport document.

Customs duties and all other duties, taxes or charges which are collected from or in connection with the importation of goods.

Authorisation issued by a competent authority for the importation or exportation of goods subject to restriction.

Commonly known as 10+2. It is a Customs and Border Protection (CBP) requirement for importers bringing ocean cargo into the US.

The act of bringing or causing any goods to be brought into a customs territory.

Set of standardised trade terms published by the International Chamber of Commerce (ICC). They define the responsibilities of buyers and sellers in international trade, specifically regarding: who pays for what; where delivery takes place, and; who bears the risk at each stage of the shipping process.

More information can be found on our 360Customs knowledge hub.

A direct customs representative acts in the name of and on behalf the person that they are representing, whereas an indirect representative acts in their own name but on behalf of the person that they are representing.

The carriage of persons embarked or goods loaded in the customs territory for disembarkation or unloading within the same customs territory.

A system used by the European Union to collect statistics on the trade of goods between member states.

A customs procedure that allows businesses to import goods temporarily without paying import duties, VAT, or other charges, on the condition that the goods are processed and then re-exported.

An international treaty that standardises and simplifies procedures for the temporary admission of goods across borders without the payment of import duties and taxes.

An international treaty aimed at reducing greenhouse gas emissions to combat climate change. It was adopted in 1997 in Kyoto, Japan, and entered into force in 2005.

A letter of empowerment in customs is a formal document that authorises a third party—such as a customs broker, freight forwarder, or logistics provider—to act on behalf of an importer or exporter in customs-related matters

A systematic method used to evaluate the environmental impacts associated with all stages of a product’s life cycle, from raw material extraction through production, use, and disposal.

An LRN is a unique identifier temporarily assigned to a customs declaration or transit operation before it's formally submitted to the relevant customs authority.