Terminology

Advance Commercial Information (ACI)
Program that introduces more effective risk management processes and tools to identify threats to our health, security and safety prior to the arrival of cargo and conveyances.

Assessment of Duties and Taxes
Determining the amount of duties and taxes payable.

Automated Commercial Environment (ACE)
U.S. Customs electronic data system that provides support for ensuring trade compliance, enforcing trade and contraband laws, and providing service and information to the international trade community.

Bonded Warehouse
A warehouse for storage or manufacture of goods on which payment of duties is deferred until the goods enter the Customs Territory. The goods are not subject to duties if reshipped to foreign points.

Certificate of Origin
A document that certifies the country where the product was made (i.e., its origin). A common export document, a Certificate of Origin is needed when exporting to many foreign markets. It may be required in order to obtain preferential tariff treatment under several Free Trade Agreements (i.e., NAFTA, APTA, DR_CAFTA, etc.)

Commercial Invoice (CI)
A document prepared by the exporter or freight forwarder, and required by the foreign buyer, to prove ownership and arrange for payment to the exporter. It should provide basic information about the transaction, including description of goods, address of shipper and seller as well as delivery and payment terms. In some cases, the Commercial Invoice is used to assess customs duties.

Cost and Freight (C&F)
The exporter pays the costs and freight necessary to get the goods to the named destination. The risk of loss or damage is assumed by the buyer once the goods are loaded at the port of embarkation.

Cost, Insurance and Freight (CIF)
The exporter pays the cost of goods, cargo and insurance plus all transportation charges to the named port of destination.

Country of Origin of Goods
Country of origin in which the goods have been produced or manufactured.

Customs
The government service that is responsible for the assessment of import and export duties and taxes and administration of other laws and regulations that apply to the importation, transit and exportation of goods.

• This term is also used when referring to any part of the customs service or its main or subsidiary offices.
• This term is also used adjectivally in connection with customs officials, import or export duties control on goods, or any other matter within the purview of customs (customs officer, customs duties, customs office, customs declaration).

Customs and Border Protection (CBP)
Single unified border agency of the United States.

Customs Declaration
A document that traditionally accompanies exported goods bearing such information as the nature of the goods, their value, the recipient and their ultimate destination. Required for statistical purposes, it accompanies all controlled goods being exported under the appropriate permit.

Customs Invoice
A formal document used to clear goods through customs in the importing country by providing pertinent shipment information including but not limited to country of origin, description and value.

Customs Self Assessment (CSA)
Offers approved importers, approved carriers, and registered drivers the benefits of a streamlined clearance option for CSA eligible goods.

Customs Trade Associateship Against Terrorism (CTPAT)
Joint government-business initiative designed to build cooperative relationships that seek to strengthen the overall supply chain and border security.

Electronic Data Interchange for Administration, Commerce, and Transport (EDIFACT)
International standard for EDI (standards work toward universal, international conventions for electronic data interchange).

Electronic Manifest (E-Manifest)
Submission of a manifest electronically.

European Economic Community (EEC)
A group of 25 democratic European countries that are committed to working together for peace and prosperity.

Export
A shipment transported out of a country.

Export Permit
A legal document that is necessary for the export of goods controlled by the government of Canada, specifically goods included on the Export Control List (see above) or goods destined for countries on the Area Control List.

Export Quotas
Specific restrictions or ceilings imposed by an exporting country on the value or volume of certain exports to protect domestic producers and consumers from temporary shortages of the goods affected or to bolster their prices in world markets.

Foreign Trade Zone (FTZ)
An area within the U.S. that is legally considered outside of U.S. customs territory.

Free on Board (FOB)
The goods are placed on board the vessel by the seller at the port of shipment specified in the sales contract. The risk of loss or damage is transferred to the buyer when the goods pass the ship’s rail.

Importer of Record (IOR)
The owner or purchaser of the goods; or, when designated by the owner, purchaser, or consignee, a licensed customs broker.

Prior Notice (PN)
Prior Notice requirements include a set of data elements on food imports that must be filed electronically, using either the FDA website or Automated Broker Interface (ABI).

Pro Forma Invoice
An invoice prepared by the exporter prior to shipping the goods, informing the buyer of the goods to be sent, their value and other key specifications.