Customs Terminology Glossary
Your complete reference guide to customs clearance, import compliance, and international trade terminology—written by licensed customs brokers with 20+ years of experience.
39 terms found
A
- ABI(Automated Broker Interface)
ABI (Automated Broker Interface) is CBP-certified software that connects directly to U.S. Customs' ACE system for electronic customs entry filing. It enables real-time submission, instant validation, and automated workflows for customs clearance.
Example:
Strix provides ABI-certified software so importers can file their own customs entries with professional-grade technology.
- ACE(Automated Commercial Environment)
ACE (Automated Commercial Environment) is U.S. Customs and Border Protection's (CBP) primary trade processing system. It's the single window system where all customs entries, ISF filings, and trade documents are submitted and processed electronically.
Example:
All customs entries must be filed through ACE, either using certified ABI software or through a licensed customs broker.
- AD/CVD(Anti-Dumping and Countervailing Duties)
Additional duties imposed by CBP on imported goods that are being sold in the U.S. at less than fair value (dumping) or that benefit from foreign government subsidies. These duties are designed to level the playing field for domestic producers.
Example:
Steel imports from certain countries may be subject to AD/CVD duties in addition to normal customs duties.
B
- Bill of Lading(B/L or BOL)
A legal document issued by a carrier to a shipper that details the type, quantity, and destination of goods being transported. It serves as a receipt of cargo, a contract of carriage, and a document of title.
Example:
The Bill of Lading number is required for ISF filing and must be provided to CBP before cargo arrives at the U.S. port.
C
- CBP(U.S. Customs and Border Protection)
The federal agency responsible for regulating and facilitating international trade, collecting import duties, and enforcing U.S. trade and customs laws. CBP operates under the Department of Homeland Security.
Example:
All imports entering the United States must be declared to CBP and undergo customs clearance.
- Commercial Invoice
A primary document used in international trade that provides a complete description of goods being sold, including price, quantity, and terms of sale. Required for customs clearance and duty calculation.
Example:
The commercial invoice must accurately reflect the transaction value and product descriptions for proper customs classification and valuation.
- Continuous Bond
A customs bond that covers all imports made by a specific importer for one year (renewable annually). Required for importers who bring in more than a few shipments per year. The bond amount is based on duties, taxes, and fees paid in the previous 12 months.
Example:
Importers who file more than 4 entries per year typically need a continuous bond rather than single-entry bonds.
- Customs Bond
A financial guarantee that ensures payment of duties, taxes, and penalties to CBP. Required for most imports entering the United States. The bond protects CBP in case the importer fails to pay required duties or comply with customs regulations.
Example:
A customs bond of at least $50,000 is typically required for regular importers to secure release of cargo.
- Customs Broker
A licensed professional authorized by CBP to assist importers in meeting federal requirements governing imports. Brokers prepare and file customs entries, arrange for payment of duties, take steps to release goods, and advise clients on customs requirements.
Example:
Strix employs licensed customs brokers who provide guidance to self-filing customers and handle full-service brokerage for complex shipments.
- Customs Valuation
The process of determining the dutiable value of imported goods for the purpose of calculating duties and taxes. The primary method is transaction value (the price actually paid or payable for the goods).
Example:
Customs valuation includes the cost of goods, shipping to the U.S. port, and insurance, but excludes inland freight after arrival.
D
- Drawback(Duty Drawback)
A refund of duties, taxes, or fees paid on imported goods that are subsequently exported or destroyed. Allows importers to recover up to 99% of duties paid on qualifying merchandise.
Example:
A manufacturer who imports components, assembles them into finished goods, and exports the finished products may be eligible for duty drawback on the imported components.
- Dutiable Value
The value of imported goods used as the basis for calculating customs duties. Typically the transaction value (price paid) plus international shipping and insurance costs, but before inland freight and U.S. duties.
Example:
If you purchased goods for $10,000 FOB and paid $500 for ocean freight, the dutiable value would be $10,500.
- Duty Rate
The percentage or specific amount of duty (tax) applied to imported goods based on their HTS classification. Rates vary by product type and country of origin, and may include special rates under free trade agreements.
Example:
Cotton t-shirts may have a duty rate of 16.5%, while certain electronics may enter duty-free.
E
- Entry Summary(CF 7501 or Entry Type 01)
The official customs document that provides detailed information about imported goods, including classification, value, duty calculation, and admissibility. Must be filed within 15 days of cargo arrival (with some exceptions).
Example:
The entry summary for consumption (Type 01) is the most common entry type for goods entering U.S. commerce.
- Entry Type
A code that designates the type of customs entry being filed. Common types include: Type 01 (Consumption Entry), Type 03 (Immediate Delivery), Type 11 (Warehouse Entry), and Type 23 (Informal Entry).
Example:
Type 03 entries allow for quick release of time-sensitive cargo, with the full entry summary filed within 10 days.
F
- FDA(Food and Drug Administration)
A Partner Government Agency (PGA) that regulates food, drugs, cosmetics, and medical devices imported into the United States. FDA clearance is often required before CBP will release regulated products.
Example:
Food and supplement imports require prior notice to FDA, and may require facility registration and product listing.
H
- HMF(Harbor Maintenance Fee)
A fee of 0.125% (1/8 of 1%) of cargo value charged by CBP on commercial cargo shipped through identified U.S. ports. The fee funds maintenance and improvement of U.S. harbors.
Example:
On a $100,000 shipment, the HMF would be $125 (0.125% of the cargo value).
- HTS(Harmonized Tariff Schedule)
The official classification system used to determine duty rates for imported goods. The HTS code is a 10-digit number that describes the product and determines the applicable duty rate, quotas, and reporting requirements.
Example:
Men's cotton woven shirts might be classified under HTS 6205.20.2065, which determines the duty rate and any applicable trade agreements.
I
- IEEPA(International Emergency Economic Powers Act)
A federal law that grants the President authority to regulate international commerce during national emergencies. Often used as legal basis for imposing additional tariffs on imports from specific countries.
Example:
Section 301 tariffs on certain Chinese imports were implemented under IEEPA authority.
- Immediate Delivery(Entry Type 03)
A customs entry type that allows for quick release of goods before the full entry summary is filed. Used for perishable goods, time-sensitive cargo, or when estimated duties are paid upfront. Full entry must be filed within 10 days.
Example:
Fresh produce shipments often use Type 03 entries to minimize delays and ensure products reach market quickly.
- Importer of Record(IOR)
The party responsible for ensuring that imported goods comply with all U.S. laws and regulations, and for paying all duties, taxes, and fees. The IOR is legally liable for the accuracy of the customs entry.
Example:
The importer of record must have a valid EIN or SSN and be registered with CBP to clear goods.
- ISF(Importer Security Filing (10+2))
A security filing required by CBP for ocean cargo shipments entering the United States. Must be filed at least 24 hours before cargo is loaded on a vessel at the foreign port. Also known as 10+2 because it requires 10 data elements from the importer and 2 from the carrier.
Example:
Failure to file an ISF or filing late can result in penalties of $5,000 per violation.
L
- Liquidation
The final computation and assessment of duties by CBP on a customs entry. Occurs typically 314 days after entry unless extended. After liquidation, the importer has 180 days to file a protest if they disagree with CBP's determination.
Example:
Once an entry is liquidated, the duty assessment is final unless a timely protest is filed.
M
- MPF(Merchandise Processing Fee)
A fee charged by CBP for processing formal entries (valued at $2,500 or more). The fee is 0.3464% of the cargo value with a minimum of $27.75 and a maximum of $538.40 per entry.
Example:
On a $50,000 shipment, the MPF would be $173.20 (0.3464% of cargo value).
P
- Packing List
A detailed document that describes the physical contents, packaging, and measurements of a shipment. Used by CBP to verify cargo contents and by carriers for handling. Required for customs clearance.
Example:
The packing list shows 50 cartons of widgets, each carton measuring 24x18x12 inches and weighing 45 pounds.
- PGA(Partner Government Agency)
Federal agencies other than CBP that regulate imports of specific products. Major PGAs include FDA, USDA, EPA, CPSC, and others. CBP coordinates with PGAs to ensure imported goods meet all federal requirements.
Example:
Food products require FDA clearance, plants require USDA permits, and chemicals may require EPA approval before CBP releases the cargo.
- Power of Attorney(POA)
A legal document that authorizes a customs broker to conduct customs business on behalf of an importer. Required for brokers to file entries and transact business with CBP on the importer's behalf.
Example:
Before a customs broker can file entries for your company, you must provide them with a signed CBP Form 5291 (Power of Attorney).
- Protest
A formal legal challenge filed with CBP contesting a decision on an entry, such as classification, valuation, or duty assessment. Must be filed within 180 days of liquidation or the challenged decision.
Example:
If CBP reclassifies your product and increases the duty rate, you can file a protest to challenge their decision.
- PSC(Post Summary Correction)
A mechanism to correct errors or obtain refunds on liquidated customs entries before the 180-day protest deadline expires. Often used to claim duty refunds when circumstances change after entry, such as when tariffs are invalidated.
Example:
Importers affected by invalidated IEEPA tariffs can file PSCs to recover overpaid duties before the 180-day deadline.
R
- RLF(Remote Location Filing)
The ability to file customs entries at any U.S. port electronically, regardless of the customs broker's physical location. Most modern brokers operate nationwide using RLF privileges.
Example:
Strix uses RLF to serve importers at all 50 U.S. ports of entry from our Montana office.
S
- Schedule B
The export classification system used for U.S. exports. Similar to HTS but used for reporting exports rather than calculating duties. The first 6 digits match the international HS code system.
Example:
When exporting goods from the U.S., you must provide the correct Schedule B number on shipping documents.
- Section 301 Tariffs
Additional tariffs imposed on imports from specific countries under Section 301 of the Trade Act of 1974, often in response to unfair trade practices. Most commonly associated with tariffs on Chinese imports.
Example:
Many electronics from China are subject to additional Section 301 tariffs (often 7.5% or 25%) in addition to regular HTS duties.
- Self-Filing
The practice of an importer filing their own customs entries directly with CBP using certified ABI software, rather than hiring a customs broker to file on their behalf. Legal for any importer of record.
Example:
With Strix's self-filing software, importers can file their own entries for $30 per entry instead of paying traditional broker fees of $100-250.
- Single Entry Bond
A customs bond that covers a single import transaction. Used by occasional importers who don't need a continuous bond. The bond amount is typically the value of the goods plus estimated duties.
Example:
A company importing one shipment per year might use a single entry bond rather than purchasing a continuous bond.
- Surety
The insurance company or entity that issues customs bonds and guarantees payment to CBP if the importer fails to pay duties or comply with customs regulations.
Example:
Customs bonds must be issued by a surety company approved by the U.S. Department of Treasury.
T
- Transaction Value
The price actually paid or payable for imported goods when sold for export to the United States, including packing costs and international transportation. This is the primary method for customs valuation.
Example:
If you paid $10,000 for goods FOB China plus $1,000 ocean freight, the transaction value for customs purposes is $11,000.
U
- UFLPA(Uyghur Forced Labor Prevention Act)
A U.S. law that presumes goods produced wholly or in part in the Xinjiang region of China are made with forced labor and are prohibited from import unless the importer can prove otherwise with clear and convincing evidence.
Example:
Importers must provide detailed supply chain documentation to CBP to demonstrate their products are not subject to UFLPA restrictions.
- USDA(United States Department of Agriculture)
A Partner Government Agency that regulates imports of plants, animals, meat, poultry, and agricultural products. USDA permits and inspections are often required before CBP releases agricultural cargo.
Example:
Wooden pallets and packaging must meet USDA standards to prevent introduction of invasive pests.
W
- Warehouse Entry(Entry Type 11)
A customs entry type that allows imported goods to be stored in a bonded warehouse without paying duties until the goods are withdrawn for consumption. Duties are deferred until withdrawal or the goods are exported.
Example:
Type 11 entries are useful for goods that may be re-exported or when the importer wants to defer duty payment.
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